Corn futures could hit $4.50 by June
An analyst expects corn prices to surpass $4 dollars this summer.
Stewart-Peterson senior market advisor Naomi Blohm tells Brownfield expectations of fewer acres and continued strong demand are creating friendly scenarios for corn.
“Mostly likely, for now, we should be set up for a nice spring (and) summer rally.”
She says even with trendline yields this year, corn ending stocks would likely fall below 1.8 billion bushels.
Blohm and other analysts with Stewart-Peterson have calculated a 70 percent chance that futures prices will retest 2016 highs near $4.50.
“If you take a look at seasonal price trends and historically what the price of corn does, a lot of times that seasonal high will come in the earlier weeks of June. So I’m targeting late May until about the third week of June. That’s when (the rally) happened last year.”
Blohm says issues related to weather and demand are the primary marketing factors corn farmers should consider.
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