# Why Grain Prices are Surging and What It Will Take For The Rally to Last - ProAg

> Corn and soybean prices are rallying on a smaller US crop than expected, strong export demand and South American weather concerns. Chinese purchases have reduced US corn carryout, and La Niña is forecast to build into winter.

- Date: 2020-11-24 · published 2020-11-24T12:00:00.000Z
- Category: trade · region US · magnitude medium
- Page: https://feedsoft.ai/events/4399-why-grain-prices-are-surging-and-what-it-will-take-for-the-rally-to-last-proag
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Tighter US carryout and strong Chinese buying support higher corn and soybean prices, with the risk that a shift in Chinese purchases or La Niña weather could reverse the move. Higher corn costs could also cut ethanol production and DDGS output.

## Read by commodity

- SOY: bullish ▲
- CORN: bullish ▲
- DDGS: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2025-10-31 | [With a China Deal How High Will Soybean and Grain Prices Rally? What is China Already Buying? - AgWeb](https://feedsoft.ai/events/14628-with-a-china-deal-how-high-will-soybean-and-grain-prices-rally-what-is-china.md) | -0.4% | +2.7% |
| CORN | 2026-09-01 | [After the Bell \| Grain and energy rally - Pro Farmer](https://feedsoft.ai/events/10977-after-the-bell-grain-and-energy-rally-pro-farmer.md) | +0.2% | +4.5% |
| CORN | 2021-01-27 | [The sharp rise in prices of soybean oil will support prices for sunflower oil and sunflower](https://feedsoft.ai/events/49249-the-sharp-rise-in-prices-of-soybean-oil-will-support-prices-for-sunflower-oil.md) | +1.9% | -0.6% |
| CORN | 2020-07-21 | [Sales to China spark price rally \| The Land \| NSW](https://feedsoft.ai/events/52072-sales-to-china-spark-price-rally-the-land-nsw.md) | -0.3% | +2.6% |
| CORN | 2023-04-05 | [Why China is the Wildcard for Corn Prices - AgWeb](https://feedsoft.ai/events/36433-why-china-is-the-wildcard-for-corn-prices-agweb.md) | -0.1% | -2.2% |
| SOY | 2025-10-31 | [With a China Deal How High Will Soybean and Grain Prices Rally? What is China Already Buying? - AgWeb](https://feedsoft.ai/events/14628-with-a-china-deal-how-high-will-soybean-and-grain-prices-rally-what-is-china.md) | +0.0% | +4.3% |
| SOY | 2026-09-01 | [After the Bell \| Grain and energy rally - Pro Farmer](https://feedsoft.ai/events/10977-after-the-bell-grain-and-energy-rally-pro-farmer.md) | +2.1% | +1.8% |
| SOY | 2021-01-27 | [The sharp rise in prices of soybean oil will support prices for sunflower oil and sunflower](https://feedsoft.ai/events/49249-the-sharp-rise-in-prices-of-soybean-oil-will-support-prices-for-sunflower-oil.md) | -1.1% | +3.9% |

## Sources

- proag.com: https://www.proag.com/news/why-grain-prices-are-surging-and-what-it-will-take-for-the-rally-to-last/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.