Corn price rally unlikely but possible
The co-founder of an ag market website says a rally in corn prices will be hard to come by.
Matt Bennett tells Brownfield while weather remains the dominant factor in setting prices, a weakening dollar will likely lead to more trade with China.
“Whether they want to do business with us or not, if we’re the cheapest market, they’re going to come to us,” he said.
The Illinois farmer says if that is the case, it will provide support for corn prices. But Bennett says it will take at least one of a few market triggers to occur for the corn price to rally…
“The Chinese have bought a ton of corn or, second of all, the dollar has continued to plummet which obviously is going to make our products really cheap on the world market,” he said. “And I guess third of all, we could add to it is this inflationary tone as we’ve watched some of these other commodities.”
Bennett says with an expected large corn crop, this year will likely be the first in the last two decades that December corn is traded below the spring price. Monday, Chinese corn futures hit record high prices because of tight domestic supplies and strong demand at state auctions.
Bennett’s website can be found at agmarket.net.