By Jon Scheve, Superior Feed Ingredients, LLC
Right now many analysts and advisors are suggesting corn and beans are too cheap and prices should rally. This makes sense because U.S. corn prices are the cheapest in the world, which means exports should increase. Elevator managers that I have spoken with indicate that farmers aren’t selling at these values. The counter side to prices having to rally is farmers are sitting on A LOT of stored corn, which could be keeping prices from increasing the next couple of months.
Many bulls are also saying corn is growing too fast and yields will be negatively impacted. Some are predicting a 178 or lower average national yield, at which prices should rally. The counterpoint to this is weather has been widely and consistently very good. Arguably it’s the best growing conditions ever for the largest portion of the Corn Belt at one time.