The U.S. Department of Agriculture says soybean prices have reached a nine year low.
The USDA Economic Research Service says prices have collapsed because of the combined pressure of favorable growing conditions, more acres, large old-crop stocks, and China's tariff hike on imports.
On June 1, cash soybean prices for central Illinois were $9.86 per bushel but, by early July, had plummeted to just more than $8.00. Prices have not dropped that low since December of 2008.
Lowered export expectations, along with a bright outlook for crop conditions and estimated acreage harvested, has lowered prices. USDA has also raised production forecast to 4.31 billion bushels, which would be the second largest harvest on record.
The USDA says if the crop continues without difficulty, post-harvest prices will likely be even lower.