Crop prices are rising in the U.S., in large part due to an increased international demand led by top buyer China. New data shows how crops like wheat, soybeans and corn have all seen significant gains in price over the last three months.
According to data collected by FactSet, these four common types of crop in the U.S. have all grown in futures price by over 20 percent since August. Leading the charge is hard red winter wheat with a nearly 33 percent increase, followed closely by corn and soybeans at around 32 percent. Soft red winter wheat has had a more modest but still substantial 21 percent increase over the past three months.
The Wall Street Journal reports investors remain optimistic and bullish on agricultural prices in the U.S., with confidence solidifying as China continues to buy the bulk of U.S. crops. According to the U.S. Agriculture Department, China is on pace to purchase record volumes of corn from the country and is pursuing above-average amounts of soybeans and wheat.
Still, global production of crops like soybeans are expected to underperform in many parts of the world. Top producing-states like Ohio and Indiana have had low yields this year, while the world’s largest soybean producer, Brazil, is running low due to huge purchases made by China.