When Will Corn Prices Rally?
Talking with a lot of farmers recently the most common topic that comes up is where do corn prices go from here? The August USDA Supply Demand Report was a "game changer" even though it was not that bearish. Last year our national corn yield was 174 bushels an acre. The USDA was estimating this year's yield at 171 bushels an acre going into the August report. The average trade guess was for the USDA to drop the national yield to 167 bushels an acre.
In the August report, the USDA only dropped the yield to 169 bushels an acre. Corn prices dropped around 15 cents a bushel that day and a whole lot more since. The Farm Journal (formerly Pro Farmer) Midwest Crop Tour released their estimate Friday of 167 bushels an acre, which was what traders expected from the USDA. However, corn prices have dropped about 65 cents a bushel since just before the USDA August report.
The next level of support for December corn is around 3.35. The contract low for the December 2016 contract was set on August 31, 2016 at 3.14-3/4. It appears we are following the same pattern as last year. So, as we get closer to harvest we may find out the crop is not as big we thought and we can begin to work our way higher? However, if I knew for sure do you think I would get up every day at 3:15AM?