“There’s no rule to say corn couldn’t have a $2 in front of it,” Vaclavik tells “AgDay” host Clinton Griffiths. “That doesn’t mean I’m bearish the market, it doesn’t mean I’m projecting that. It just means that it’s certainly within the realm of possibility when you look at the macroeconomic environment, when you look at the demand. South America’s in good shape. There’s no rules in this thing. When you get in these bear markets, the tendency is to want to pick a bottom. Maybe we’ve seen it, but maybe we haven’t.”
To manage risk more closely, producers should look at marketing tools that can help.
“Options are a great tool to carry you into spring and summer,” Vaclavik says. “They’re affordable right now relative to what they’ve been the last year just to … give the farmer some peace of mind.”
The bottom line is that a plethora of unknowns leave the potential for a deeper price bottom than some might have expected previously.
Read more from AgWeb.com: "$2 Corn 'Within the Realm of Possibility'"