Soybean, corn costs to impact consumer prices

Planting season is here in the Miami Valley, and the price of soybeans and corn is higher than it has been in years.

News Center 7′s Gabrielle Enright found out what that means for farmers and how it could affect the things people buy at grocery stores.

When it’s not raining, farmers are in the fields of two of Ohio’s largest crops, corn and soybeans, and there’s a demand for both across the globe.

News Center 7 learned that for current delivery, the price of soybeans is 15 dollars and 65 cents a bushel. Corn is seven dollars and twelve cents per bushel.

“We have high demand and short supply, you’re going to get a higher price. We’re running about double what we were last year,” said Dr. John Tarwater, an associate professor of finance at Cedarville University.

Tarwater said this scenario is a plus for local farmers.

“They’re wanting to increase their supply at a time when prices are already up, so this is really good for farmers,” said Tarwater.

He said that luck will depend on several things, such as a decent harvest that often depends on the weather.

It also will depend on the U.S’s relationship with China, because the country buys more than half of the nation’s supply and COVID-19 concerns could ultimately affect demand.

Tarwater said it’s always a gamble, but if you’re a farmer it’s a good scene right now.

Although, grocery stories could be impacted.

An increase in corn and soybean prices will increase the price of feed for cattle and hogs, and ultimately their meat.

A recent increase in the price of oil will affect stores as well.

“When the price of gasoline goes up, moving the products from one place to another takes gasoline or fuel,” Tarwater said. “When you move products, whether by freight, ship or plane, we will all see those prices going to increase.”

Tarwater expects inflation to play a role in prices too as more people spend stimulus money.