AgResource President predicting $2.60 corn futures
A Chicago-based ag economist is predicting corn futures prices will continue to get worse before they get better.
Dan Basse, President of AgResource Company, tells Brownfield with the decline in ethanol demand and exceptional planting progress, he expects December corn futures to drop to $2.60 by late summer.
“I just think farmers need to be very cognizant that the upside potential is limited. Should we get a rally back in December corn futures maybe to $3.40 or above, that would be a sales opportunity.”
Basse says prices could stay below $3.00 until farmers see the outcome from harvest or something changes.
“Unfortunately, low prices could be here a while. Until we get the ethanol industry back in the United States economy again or until we find our friends elsewhere in the world producing less, the world supply of corn will remain substantial and that is the problem I have for a quick recovery.”
He says it has been nearly 20 years since loan deficiency payments were needed for grain, but he thinks that could be a possibility this year.
Basse says the trade will also be watching discussions between the US and China over the origin of the coronavirus and how it has been handled.