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Corn rallies 40 cents on planting delays

An extension grain market economist tells Brownfield this spring’s planting delays have provided a second chance to farmers pricing corn.

Ed Usset with the University of Minnesota says it’s been a quick spurt higher as wet conditions continue to keep planters out of fields.

“Old crop spot prices for corn in southwestern Minnesota have the highest cash price for corn we’ve seen since harvest. In fact, the highest cash price for corn in southwestern Minnesota since May of last year.”

Since hitting a contract low a week ago, July corn has gained 40 cents and December new crop is up nearly 40 cents.

Even with the rally, he acknowledges $3.50 cash is not a great price for corn.

“In fact, the range over the last year has been $3.20 to $3.50. So it’s a narrow range, not a lot of volatility there. But you know what? Better to sell at the high end of the range than the low end.”

Usset says he’s hearing speculation corn acreage won’t reach 90 million this year.

In its Prospective Planting estimates, the USDA forecast corn at nearly 93 million acres.