As the end of 2024 approaches, US farmers are focused on planning for 2025, anticipating how commodity prices for major agricultural goods like corn, soybeans, and wheat will fluctuate. Numerous factors, including global demand, input costs, and government policies, will impact the agricultural market. This guide explores the latest price forecasts for agricultural commodities and provides an overview of the key factors influencing the commodity markets in the upcoming marketing year.
Understanding the core elements that affect commodity markets will be crucial for US farmers as they plan for the 2025 season. Here are the primary factors:
Here’s a detailed look at the expected price forecasts for key agricultural commodities heading into 2025:
Corn prices saw significant increases in 2024 due to adverse weather and high demand for ethanol production. According to the USDA and ERS, corn is expected to continue seeing strong demand into 2025, with projected prices staying between $5.50 and $6.00 per bushel. High futures prices for corn are supported by both ethanol demand and export needs.
The soybean market has also been volatile in 2024, largely due to strong demand for exports to countries like China and the production of biofuels. The USDA predicts that soybean prices will stabilize between $12 and $13 per bushel in 2025. Although inventories are expected to recover slightly, ongoing global demand will keep pressure on prices.
Wheat prices have been especially unpredictable, with the conflict in Ukraine driving record-high prices in 2024. In 2025, wheat prices are forecast to remain high, ranging from $6.50 to $7.50 per bushel, due to global supply chain constraints and continued demand for US wheat.
Reduced cattle herds in 2024 led to a spike in cattle prices, and this trend is expected to persist in 2025. Farmers can expect record-high cattle prices ranging from $180 to $200 per hundredweight, as supply remains constrained while demand for beef remains strong both domestically and internationally.
The dairy market has also seen an increase in input costs, particularly due to higher feed prices. Dairy prices are expected to stay stable between $18 and $20 per hundredweight in 2025, supported by strong demand for milk and cheese products.
Given the volatility in the agricultural market, farmers need to adopt risk management strategies to protect their operations. Here are some recommended actions:
The 2025 marketing year promises to bring challenges, including commodity price volatility, rising input costs, and shifting government policies. However, with careful planning and the use of risk management strategies, farmers can position themselves to take advantage of high prices for key agricultural commodities. By staying informed about the latest price forecasts for corn, soybeans, wheat, and other agricultural products, US farmers can make strategic decisions to ensure a profitable year.