AMES, IA- There is some reason to believe the present strong demand for both corn and soybeans will continue, says Iowa State University Extension ag economist Chad Hart. Right now the export market is great, Hart says. The feed market is good. Ethanol demand is still weak, although it holds some promise.

The overall demand for corn and soybeans is very strong, Hart says, and with more people getting vaccinated for COVID-19 it is likely that more will also be wanting to get out and travel this summer. Cruises and flights anywhere don’t look especially attractive yet, but national parks and car vacations look pretty inviting, he says. The soybean outlook is somewhat similar to that of corn.

There were weather problems in numerous grain-producing regions of the world, but the biggest reason for the surge in prices was strong demand. Corn prices at the ethanol plant down the road from Albers’ farm dropped down to $2.99 per bushel at the end of July of last year. Today they are in the $6 range. Weather and exports remain the biggest market concerns. But the supply is tight and the demand remains strong.

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