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Opportunities for corn price rallies

corn-nutra-flo

An agriculture economist says smaller U.S. corn supplies might help with some price rallies for corn, “With the supply of corn not being quite as burdensome as earlier thought, it opens the door for future friendly surprises to have more of a price impact.”

Darrel Good with the University of Illinois tells Brownfield the December 2015 corn futures price reached a low of $3.75 after the release of a surprisingly large production forecast on August 12th, “Following the September reports, we did see December futures trade back up closer to $3.95. So, from bottom to high, about a 30-cent rally, just a little bit more. We’ve stabilized since then.”

The September 11th report showed slightly smaller corn supplies for the 2015/’16 marketing year.  Good says the size of the corn crop will likely change over the next two months and there are several more key reports to come out. But, he says there will likely be opportunities for farmers to “forward price stored corn for late winter/early spring delivery above 4-dollars.”

AUDIO:  Interview with Darrel Good:

University of Illinois Farm Doc report

 

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