So Long, Bear Corn Market No. 40

March 27, 2015 12:00 PM
So Long, Bear Corn Market No. 40

Since 1858, U.S. producers have experienced 40 bear corn markets, says Mike Florez, Florez Trading. Low prices are nothing new. Although the most recent downturn is unique for its persistence, Florez predicts, it isn’t here to stay.

Power Hour Noon Logo“The one we’re just completing is the sixth-longest ever in history,” Florez points out during the “AgDay” Agribusiness Update, reiterating his earlier comments on “U.S. Farm Report” this weekend. “So markets, for whatever the reason, stop going down at some point, and I think that’s where we are.” 

Corn prices have fallen since June 2012, he notes, but the market appears to have reached a bottom in October 2014, prompting a rally that lasted roughly 60 days.

“The first leg up was about 65 to 70 cents. I think this leg will be at least that amount,” Florez says. “The target I would have on December corn would be somewhere around $4.65 by the end of May.”

Why Mike Florez Is Bullish On Corn

Back to news



Spell Check

Kearney, NE
3/28/2015 06:35 AM

  His guess is as good as anyone's. And worth exactly what you paid to get it.

Western, NE
3/28/2015 10:04 AM

  When you think it can't go any lower, I'm reminded of 1986. As we blame everything on the fund traders--(let's blame the Federal Reserve also for keeping interest rates low causing way too much money to flow to the commodities)--it's all monkey see monkey do. When the "short covering" starts, call it profit taking if you will, one computer program after the other will start buying the position back and of course we'll get a rally. A dead cat bounce if you will. In the end, it will take a production problem somewhere in the world this year to sustain any rally. What happens if the Fed actually raises interest rates in September like predicted? What happens with the funds then? That needs to be addressed now. Not in September. If this guy likes his history, he better get his stuff together and start looking at what happens with funds and the Fed.

Colby, KS
3/28/2015 10:38 PM

  You can always tell which side of the market one of the gurus are on by how they sell their point sounds like a long.


Corn College TV Education Series


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!


Market Data provided by
Brought to you by Beyer