Chris Hurt: Corn Has a Better Chance of Cost, Price Aligning in 2019

December 28, 2018 09:17 AM
 
 

Corn prices continue to be stagnant heading into 2019. As the front-month contracts struggle to break the $4 mark, there are some signs that corn could have more of a bullish story in the new year, compared to other key crops. 

“In terms of corn, we really have made some progress in our usage being higher than our production numbers in the last several years, and we've reduced those inventories to what I call manageable levels,” said Chris Hurt, a Purdue University economist.  

He said the eroding inventory levels are playing in corn producers’ favor. While he doesn’t think corn prices will explode, he thinks corn prices have a better chance of ticking higher in 2019 versus soybeans.

“We think we’re going to see some further erosion in inventory levels, and be getting corn prices higher, back to levels where at least we’re closer to getting cost and price into alignment.”

Hurt said it’s a very different situation for soybeans, calling it a very “difficult carryout situation.”

Back to news


Comments

 
Spell Check

Kyle
Osmond, NE
12/29/2018 11:42 AM
 

  Most economists only look at the numbers from a macro standpoint and how the stocks of US-produced crops should translate to a "fair" market price. Those projections don't have anything to do with the micro economics that need to be managed on the farm. It's really easy to say things will be stronger when you're only looking at the grand scale of things. It does nothing to address the financial belt buckle that farms have had to cinch tighter year over year so that their own farms will cash flow positive or just find a way to lose less money.

 
 
Dave
Auburn, IN
12/28/2018 06:26 PM
 

  AS A Perdue idoit, he thinks he know everything, about 5years ago at a local meeting for farmers, Mr Hurt had the Balls to to tell landlords that they need to raise rental rates on us farmers, as rates were high already, with no knowledge of what yields we raised in our area, he gave the impression that everyone had top quality land, this hurt alot of us , don't hear him trying to help lower our rates, will never forget that, or him, to bad this jerk isn't a farmer

 
 
Bob
Small Town, KS
12/28/2018 04:54 PM
 

  Another 'economist' preaching bs. That is the whole problem with agriculture...too many 'experts' who have NOTHING to do with or any knowledge about agriculture. This same crap was disseminated in the '70s and '80s by 'expert' collegians and we saw what happened those days. Why can't these know nothing 'sooth-sayers' keep their traps shut and leave the world alone?

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close