US producer confidence down on back of dropping commodity prices

Sentiment among US agricultural producers declined sharply in May as crop prices continued to weaken, World Grain recently reported.

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The Purdue University/CME Group Ag Economy Barometer, calculated each month from 400 US producers’ responses to a telephone survey, dropped 19 points to 104, its lowest level since July 2022.

“The Index of Future Expectations was down 22 points to a reading of 98 in May, while the Index of Current Conditions was down 13 points to a reading of 116,” World Grain said.

The lower sentiment came on the back of drops in both of the barometers’ subindices, which was likely triggered by weakened crop prices, according to the barometer’s principal investigator, Jim Mintert.

“In mid-May, the Eastern Corn Belt fall delivery bids for corn fell over 50¢ per bushel (10%) and soybean bids declined over $1 per bushel (8%), while new crop June/July delivery wheat bids declined nearly 50¢ per bushel (8%), all compared to bids available in mid-April when last month’s barometer survey was conducted,” World Grain explained.