There’s no question farmers are walking through one of the most severe economic downturns in recent history. Have corn prices reached their lowest point? Some analysts say they have.
“Market bottoms occur when stocks are big and there’s been almost no market movement in a few months,” explains Ray Grabanski president and market analyst at Progressive Ag. “We’re getting very close to that in corn and winter wheat. I think we’re very close to bottom.”
He says in one month during the summer of 2012 there was more market movement than there has been in the past three years. According to Bob Utterback of Utterback Marketing, the corn low is in.
“I think the low was put in, you know at the $3.38 per bu., $3.35 per bu. Base,” he says.
Now bin doors are shut at farmers aren’t selling which won’t allow the market to rally much higher in the short term. Duwayne Bosse of Bolt Marketing says the market low is likely in and now it’s time for prices to move higher.
“The seasonal tendency is to grind higher,” he says, “and like Bob mentioned the farmers have got the bin doors welded shut if anything. There's not much farmers selling.”
Grabanski says negative news is another indication we’re at the bottom.
For more analysis from Bosse and Utterback, tune in to U.S. Farm Report this weekend.