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.
“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