Corn Could Hit $3.20 With No Summer Drought

May 12, 2016 10:25 AM

If a summer drought fails to happen, corn values could fall into the $3.20 range, while soybeans could drop as much as $1.50, predicts Rich Nelson, Allendale.

For now, Allendale is forecasting a national average corn yield of 165 bu. per acre, Nelson tells “AgDay” host Clinton Griffiths on the Agribusiness Update segment for Thursday, May 12, 2016. Values for both crops are likely to fall heading into June as the markets correct after overcompensating for the lower-than-expected South American crop, he says.

“I think we’re going to have a good price decline, maybe 40 cents to 80 cents here as far as soybeans,” Nelson says. “[We’ll] get that corn knocked down about 30 cents to 40 cents going into late May and June.”

So far, the national corn planting pace has been “aggressive” despite problems in Nebraska and portions of South Dakota, he says. Nelson anticipates a good summer price rally, though it “probably is not going to be one which lasts and gives us an actual yield problem again.”

Click the play button below to watch the complete "AgDay" interview with Nelson.

Want more video news? Watch it on AgDay.
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Spell Check

buckley, IA
5/13/2016 06:04 AM

  Always remember, the sole purpose of a broker is to scare you into buying puts through them.

Newburg, ND
5/12/2016 05:31 PM

  Speculation is exactly that...this guy has no clue what the market is going to do...

Redwing, MN
5/12/2016 05:53 PM

  Allendale needs to get their head out of a dark place and stop misleading people. I wonder how the usda gets things wrong? Just play with all of our hard earned money to benefit themselves as they minipulate the markets to make their financials look good. Just think if these people would not minipulate the market with their speculation we may not need a farm programs .


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