Markets Now: Are We Going To See $5 Corn?

3/17/18 Markets Now

After months of stagnant news, corn is finally getting a positive story.

In the USDA’s March World Agricultural Supply and Demand Estimates (WASDE) report, corn exports have been raised 175 million bushels to 2.2 billion.

That positive story has led to more positive pricing. Corn has been hovering around the $4 mark, and it’s surpassed it. Many farmers and traders are wondering if King Corn can go higher, possibly to the $5 mark.

Mike Florez of Florez Trading, thinks $4.50 basis for December corn isn’t too out of reach.

“Something’s going to cause that to happen—a weather situation, I don’t know,” he told U.S. Farm Report host Tyne Morgan.

In order to see corn hit the $5 mark, the demand needs to continue to stay strong, according to Joe Vaclavik, founder and president of Standard Grain.

“If you’ve got a low enough carryout projection by June or July, pair that with some sort of weather scare or for a minute the funds believe corn yield’s going to be 5 to 10 bushels below trend, that’s how you get a $5 corn price,” he said.

How long that could last would be anyone’s guess, said Vaclavik.

“You can’t rule out anything when weather’s involved,” he said.

Has too much corn been sold? Florez and Vaclavik discuss on Markets Now on U.S. Farm Report.