Economist: likely high harvest corn price
A University of Illinois ag economist is expecting high grain prices at harvest time. Gary Schnitkey tells Brownfield if poor weather causes some yield loss, current futures prices will be supported.
“A price on the December 2021 corn contract at $6.09,” he said. “So that’s well above where we’ve been in recent years.”
But he said the market has a wide range of possible variance. By using a projection tool based on current futures prices and options prices, Schnitkey says there’s about a 33 percent chance that corn price drops below $5.25 by harvest.
“Still, that $5.25 is at a high price but you can see [a] 33 percent chance of being below that,” he said. “There’s still pretty good chances of having some lower prices than we’re currently seeing.
Schnitkey said market variability increases as options prices go up.