Even though there is a record corn harvest, Purdue University Extension Agricultural Economist Dr. Chris Hurt said in a recent “AgriNews” report that the final tabulation on corn production will not be as high as some expected, which means prices will unlikely be “extremely low.”

But, at the same time, Dr. Hurt noted that USDA has recognized the growing demand for U.S. corn and soybean crops from export buyers, such as China. “A lot of people are breathing a sigh of relief that the crop is not larger and that there’s a growing demand base for the crops produced,” Hurt said. “This report (USDA’s November WASDE) might provide a bottom for prices.” USDA currently is estimating the national average farm-level corn price for the 2013 crop  to be $4.50 per bushel, compared with $6.89 per bushel for the 2012 crop.

Hurt noted that USDA has estimated soybean production to reach 3.26 billion bushels, which would represent the third-largest crop on record. The national average price received for 2013 soybeans is estimated to be $12.15, compared with $14.40 for the 2012 crop. “We haven’t seen the same erosion in soybean prices that we have in corn because of the strong demand from China and tight world supplies until the South American crop comes into the markets later this winter,” he said. “Soybeans could be a stabilizing influence in farm incomes. It’s never just about the size of the crop, but what buyers you have and at what price they will pay for it,”  Hurt added.