Is $8 Corn A Possibility?

April 9, 2018 04:53 PM
What would it take for corn to return to its glory days after living at $3 per bu.?

While most of the market attention has been on the possibility for increased soybean price volatility because of the Chinese tariffs, analysts agree corn could move higher over the next couple of years. One analyst thinks it could even reach $8 per bu., a level not seen since 2012.

What would it take for corn to return to its glory days after living at $3 per bu.? According to this story from Barron’s, declining output, an ethanol led demand surge in China and the potential for brutal weather could be the recipe for a price surge.

“Eight dollars is very possible,” says Shawn Hackett, author of the Hackett Money Flow Report newsletter in this story, adding that declining supplies will run headlong into increased Chinese demand.

Possible is not a word Andy Shissler of S&W Trading uses with $8 corn. In fact, he can’t see it happening.

“It takes one very, very bad situation to make $8 corn for even a day,” he says. “I don’t see it. It would take another year of stock declines globally to hit a number like that.”

According to Shissler, the kind of drought we saw in 2012 is the kind of threat that takes corn to $8.

“We are far from that market,” he says. “But, $5 or $6 could happen.” 


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Spell Check

Guttenburg, IA
4/10/2018 08:19 AM

  Who is this Shawn Hackett guy? I noticed a while back that he predicted record high milk prices. Obviously just releasing these statements to gain publicity.

flying farmer
5/4/2018 04:26 PM

  He left one very important requirement out. Monkeys flying out his rump.

Palo Alto, CA
4/10/2018 10:02 AM

  No way on $8/bu corn. Get ready for Donald's welfare checks or maybe it will be food stamps for the patriots!


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