Russia’s war in Ukraine has created the biggest grain supply dislocation since World War I, according to AgResource President Dan Basse.
Basse told a Farm Foundation virtual forum the war in Ukraine, a huge corn and wheat producer, will cause the worst global grain shortage in over a hundred years. “I’ve gone through and showed you how tight the world is going to be on grain, that this is indeed, the biggest supply dislocation we have seen, looking backwards, since World War I.”
Basse says even with input costs soaring, potential US profitability is huge. “U.S. farmers are looking at about 300-dollars an acre, in terms of corn profitability. On soybeans, 153, 54-dollars. And so, we are looking at the marketplace, encouraging US farmers to do their share to plant fence row to fence row, and produce as much as they can.”
Basse says corn futures tell the whole story. “We can look at corn futures all the way out to 2025, and we’re sitting at or above five dollars a bushel—something that has never happened before.”
With May and July corn this week topping seven dollars, Wheat 11, Soybeans, 17-dollars and September beans near 16-dollars.