Commodity Markets Center

From the docks of Southern California and Europe to the parcel hubs in the Midwest and the store shelves in New York, signs are growing that the global supply chain crisis is over.

The outlook for 2023 grain prices is difficult to pin down given a host of unknown global outcomes. Economists say the new year could bring major moves in either direction, including higher prices.

Ahead of the report, analysts expected a drop in corn yield, but not soybean yield — and the market responded quickly, says Bill Biedermann, AgMarket.Net co-founder.

Pro Farmer estimates the U.S. corn crop at 13.759 billion bushels, with an average yield of 168.1 bu. per acre, and the U.S. soybean crop at 4.535 billion bushels, with an average yield of 51.7 bu. per acre.

Tuesday's Crop Tour trek through Nebraska and Indiana gave scouts a glimpse at the moderate to exceptional drought Mother Nature has brought down on soil and crops this growing season.

Extreme weather situations, including the annual Derecho, hit regions on the eastern leg earlier this year. While the eastern Corn Belt isn't as dry as its western counterpart, yield potential looks lower than 2021.

The cotton price picture is seeing some bullish factors come into play. USDA's WASDE report on Friday revealed higher exports - along with a smaller crop last year - continue to eat into overall supplies. 

Since last year, China has been importing record volumes of U.S. corn due to a supply shortage and record domestic prices.