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Crop Rally Seen Powering On as Buyers Shrug Off High Prices

  • Meat, ethanol prices are keeping up with rise in crop costs
  • ‘Pretty much everything in the supply chain is profitable’
Photographer: Daniel Acker/Bloomberg

Crop prices are already at the highest levels in more than eight years, and with meat and fuel markets running hot, the rally may still have further to go.

Meat producers and biofuel makers have so far seen a bull market of their own, passing on the increase in grain costs as the world emerges from the pandemic. Executives from Archer-Daniels-Midland Co. and Bunge Ltd., two of the world’s top agricultural commodities traders, say there are very few signs the rally is curbing demand. And the U.S. is approaching summer -- peak time for grilling and driving -- which should only boost consumption further.