Could corn reach $10? Maybe

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

If the hot and dry weather pattern so far this summer continues, the possibilities of flirting with $10 per bushel corn and nearly $20 per bushel soybean futures prices could become a reality, according to some analysts. reported the predictions, which were expressed during Tuesday’s panel discussion at the Chicago Mercantile Exchange (CME) ahead of the USDA’s World Agricultural Supply and Demand Estimates report released on Wednesday.   

AgResource Company President Dan Basse and Founding Principal of The Hightower Report Terry Roggensack see a dismal trifecta forming as heat, drought and timing in key corn and soybean states are setting up to be an unwelcomed scenario of crop losses far worse than those in previous drought years, such as 1988.

“We haven’t seen heat and dry gang up like this before,” Roggensack told Meatingplace.

Currently, soil moisture profiles are the lowest reported since 1895. We have also experience second driest June since the Dust Bowl. These factors combined with excessive and persistent triple digit heat leaves Basse amazed by the crop losses already this season.

According to Basse, he has never seen crop losses this large occur in such a short amount of time.

“We are seeing fields in Illinois and Indiana we think will yield nothing,” he said, noting that as recently as the beginning of June, it looked as though a huge corn crop was on the way.

Basse predicts corn and soybean futures markets to remain high for months to come. He expects to see $8 to $9 per bushel corn and $17 to $19 per bushel soybeans, though he admits that “we don’t know how high is high.”

Roggensack expanded further on the possible impacts on these markets from a futurers market charting point of view, noting that when all-time-high price levels are breached, those prices are often exceeded by 20 percent. According to Roggensack, that opens the door to $9.50 to $10 corn and soybeans just under $20.

An informal poll conducted on Dairy Herd Network’s web site asked readers if corn prices would exceed $8 per bushel at some point this year. Of the 79 votes, 70 percent did expect it to exceed $8. Check out the poll here.  

Sister site PorkNetwork also polled visitors, asking them how high they thought corn prices would go this year. Twenty-five percent in this poll believed that corn prices would reach $10 per bushel, matching Roggensack’s prediction.

Analysts also predicted an average national corn yield of around 140 bushels to the acre, assuming ideal conditions moving forward. However, current weather forecasts aren’t as optimistic. Basse notes that data from the National Oceanic and Atmospheric Administration show that much of the country needs 15 to 20 inches of rain.

Current 10-day forecasts show little chance of any rain falling across the Midwest.

“It is really getting too late to help this corn crop,” said Basse. “You might fill out a few kernels better, but it won’t cause much of a change in the corn yield.”   

Read more about the panel discussion and possible impacts here.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (3) Leave a comment 

e-Mail (required)


characters left

Nebraska  |  July, 12, 2012 at 09:22 AM

What end user can make $8.00-$10.00 corn work?

Simple Guy    
SW USA  |  July, 12, 2012 at 10:59 AM

The automoblie booze makers, assuming a helpful government subsidy, and the corn chip and breakfast ceral makers might survive.

Caledonia  |  July, 24, 2012 at 09:10 AM

Will any of the end users offer split contracts on corn sales, example: Nov. 2012 delivery 5,000 bu contracts for $7.50/bu and a matching contract for 2013 in an effort to keep operating in the black and keep production flowing??


Made of high quality 304 stainless steel, the Quickveyor is one of the strongest trailers on the market. It’s belt ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form