Corn producers, don’t lose heart: 2016 might be the year you see a price rally, judging from the past 100 years of markets data.
“Looking at corn, years ending in a ‘6’ do tend to see a rally,” says Sue Martin, Ag and Investment Services, in an interview with “AgDay” host Clinton Griffiths. “This last year, I thought we’d see an EKG blip, mainly because of the fundamentals we had stacked up. This coming year, it’s going to last more than a month. I think the rally when it starts will ebb its way. June does not show up as a month for a high, it’s July or August or September.”
In fact, two such years saw rallies that lasted through the second half of the year and “went on into expiration that way,” Martin points out.
“The other years, one thing that really stood out on this study was that the preceding fall, corn’s doing every bit of what it ought to be doing—a flat, sideways, declining market into November and December,” Martin says. “One year, we did make a low in January right after the turn of the year, and then one year it happened in April and then of course that shoved that high out into September. I think there’s hope for these farmers out there that there is going to be something a little better.”
Click the play button below to watch the complete interview with Martin.