Grain prices have slumped to the lowest level since the pandemic. This news comes on the heels of Tropical Storm Beryl, which is providing rain across the Midwest during a critical phase of crop development.

The Bloomberg Grains Subindex, tracking soybean and wheat futures in Chicago and Kansas, is trading at the lowest level since 2020. This reverses the post-pandemic rally that sent grain prices soaring through 2022.

In the week ending July 2, money managers extended their short in Chicago Board of Trade corn futures and options to 336,538 contracts from 277,666 the week earlier. For the fifth consecutive week, money managers expanded their soy net short. It rose to 140,926 futures and options contracts from 129,663 the previous week.

Favorable row crop weather is fueling the pricing pressures. This is being compounded by sluggish global demand partially due to a strong dollar. American corn growers are also holding large stockpiles on their farms.

Read more on the 2024 gain price outlook here.