Markets Giveth and Taketh

Last week Tidbits noted the climb in corn and soybean prices in recent months and what it could mean for the state’s crop producers. However, when the markets giveth, they also taketh. In this case, the taketh comes from the users of corn and soybeans — livestock feeders and processors — in the form of higher costs. Roughly 35% of Nebraska’s corn production is used in the production of ethanol, and 17% is fed to livestock. Soybean processors have the capacity to crush around 70% of the state’s soybean crop. Rising commodity prices could mean cost increases of hundreds of millions for Nebraska feeders and processors, potentially outpacing the gains to crop producers and leading to a reduction in usage. The USDA lowered its latest estimates of feed and residual use for corn presumably because of reduced production and higher prices. The soybean crush estimate remained the same.  

The giveth and taketh of the rise in commodity prices is another reminder Nebraska agriculture is not homogeneous. Sectors are affected differently by changing economic conditions.

Figure 3. December 2026 Corn & November 2026 Soybean Futures

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