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Corn prices likely to remain at current levels

The price of corn continues to be a concern.

Wells Fargo ag economist Michael Swanson says “Four dollar to $4.50 corn will not be unusual.”  He says there is increased pressure from the global marketplace.  “Look at the crop the Brazilians are growing – they can grow a lot of corn at $4.00 and $4.50,” he says.  “Look at the Chinese – they’re trying support a $9 domestic price and $9 will get you too much corn.  Until the Chinese figure out they have too much corn, they’re going to struggle to deal with our low priced corn.  If you look at the major growers around the world – we’re stuck at $4.00 to $4.50 corn for a while.”

Swanson tells Brownfield $4 corn creates tighter margins – and farmers will have to tighten their belts in many cases to break even over the next couple of years.