Farmers received higher prices for ag commodities in November

WASHINGTON — US farmers received 4.5% more for their goods in November than in October, the US Department of Agriculture said in its latest Agricultural Prices report. At the same time, the price of goods, services and other costs paid by farmers was unchanged.   

The November prices received index was 133.4% of the 2011 base, up 4.5% from October and up 23% from November 2021, the USDA said. Farmers received higher prices for soybeans, eggs, cattle and lettuce but lower prices for milk, hogs and cotton. Further, the volume of sales increased for corn, milk, cattle and cotton but decreased for wheat, soybeans, grapes and lettuce. The food commodities index was 145.3, up 8.6% from October and up 27% from November 2021.

Select sectors of the prices received index included the food grains index at 124.7% of the 2011 base in November, up slightly from October and up 10% from a year earlier, the feed grains index at 108.6%, down slightly from October but up 24% from a year ago, with the average price of corn at $6.49 per bu, down 1¢ from November but up $1.23 from November 2021, and the oilseeds index at 112%, up 3.7% from October and up 15% from a year earlier, with the average price of soybeans at $14 per bu, up 50¢ from October and up $1.90 from November 2021.

Within the food grains index, the average price of all wheat paid to farmers in November was $9.16 per bu, down 5¢ from October but up 64¢ from November 2021. The average price of winter wheat was $8.92 per bu in November, down 22¢ from October but up $1.14 from a year earlier, including hard red winter at $9.09 per bu, down 41¢ from October but up $1.44 from last year, and soft red winter at $8.07 per bu, down 49¢ from October but up 76¢ from last year. Durum prices averaged $10.40 per bu, up 20¢ from October but down $3.60 from November 2021. Other spring wheat averaged $9.24 per bu, up 9¢ from October and up 40¢ from last year, including hard red spring at $9.29 per bu, up 11¢ from October and up 41¢ from last year. White wheat prices averaged $8.67 per bu, up 23¢ from October and up 38¢ from last year. The average price of rice was $18 per cwt, up 50¢ from October and up $2.30 from a year ago.

The dairy index at 127.4 was down 1.2% from October but up 24% from 2021, with the all milk price at $25.60 per cwt, down 30¢ from October but up $4.90 from a year earlier. The poultry and egg index (which includes eggs, broilers and turkeys) was 207.2 in November, up 9.5% from October and up 67% from November 2021, with the market egg price at $3.43 per dozen, up 61¢ from October and up $2.58, or 305%, from last year.

For comparison, year-over-year price changes for select ingredients reported by Milling & Baking News included bakers standard patent flour (pan bread flour) on Dec. 30 at $22.25 per cwt, down 12% from a year earlier, spring standard patent at $24.35 per cwt, down 3%, soft wheat flour at $18.15 per cwt, down 6%, and semolina at $29.45 per cwt, down 35%. Nearby (March) wheat futures ended 2022 at $8.88 a bu in KC, up 86½¢, or 11%, from the end of 2021, at $7.92 a bu in Chicago, up 21¼¢, or 3%, and at $9.38¾ a bu in Minneapolis, down 43¼¢, or 4.4%. The Chicago March corn future closed at $6.78½ per bu on Dec. 30, up 85¼¢, or 14%, from a year earlier, and the January soybean future ended at $15.19¼¢ per bu, up $1.90½, or 14%, from 2021.

Dried whole egg prices ended the year at $13.65 per lb, up 233% from the prior year.

The prices paid index, which includes commodities and services, interest, taxes and wages, was 137.1% of the 2011 base in November, unchanged from October but up 11% from November 2021. Higher prices were paid for nitrogen, concentrates, feeder cattle and feeder pigs, while lower prices were paid for services, hay and forage, complete feeds and machinery.