Harvest price discovery period could be weighing on corn market
A commodity market analyst suggests the harvest price discovery period for crop insurance could be a recent corn market driver.
Matt Bennett with AgMarket.net tells Brownfield corn rallied over the past week, which is unusual for this point in the season.
“Anytime we are wildly above or below the crop insurance price, it seems like we trend towards it at least for that fall setting period.”
He says with a spring price of $5.91, many growers could stand to collect this year.
“If their yield comes in a little below what they were hoping for or if the market would simply end up with an average 10 to 20 cents below $5.02, which is the 85% level of that $5.91.”
He says those farmers counting on a crop insurance pay out need to be watching the markets closely.
“Your insurance indemnity won’t grow if you can’t change it as much as the market is changing because the average is already halfway established. So, maybe you should step in and buy a little corn.”
The fall harvest price discovery period for corn ends October 31st.
Audio: Comments from an interview with Matt Bennett