With the release of USDA’s Prospective Plantings report, two market experts are looking ahead to where corn prices might go. Both told the U.S. Farm Report Market Roundtable on Saturday that conditions look favorable for significant corn acreage in spite of talk about major shifts to soybeans.
"Your range this year probably is $3.50 December on the low side, $6 on the high side unless there’s a real strong weather event," says Bryan Doherty, Stewart-Peterson Group Inc. "That puts corn at $4.85, right in the midpoint, just a little bit above that. The time of year says you’ve really got to watch this calendar and be selling into the calendar."
Andy Shissler, Roach Ag Marketing Ltd., agrees that weather could turn the tables. But he says prices could go anywhere.
"I think anything is in play, really, from a price standpoint," says Andy Shissler, Roach Ag Marketing Ltd. "It depends on whether we flip into El Nino or not on weather and we break the drought. But there are no guarantees on that. I would just say that we’ve kind of been working into a contracted range here where, I think if it wasn’t for the high land rents, we’d be pretty comfortable with corn at $4.50 to $4.60 on the cash market. That might really be where we need to be as far as prices go over the long term."
Click the play button below to watch the complete U.S. Farm Report Market Roundtable discussion. The segment begins at about the 8-minute mark:
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