One market analyst thinks we may see $3.50 per bushel corn, while others are predicting prices closer to the $4 mark . . . more on those predictions in a few paragraphs. In either case, dairy farm managers who have dealt with high commodity prices will welcome $3.50 to $4 corn when it comes to feeding their dairy herds and meeting feed budgets.
Last Wednesday, July 9, corn futures fell below $4 per bushel for the first time in four years. The previous low this year for new crop corn was January 10 trading activity that closed at $4.14-1/2.
Of course the bearish trading reports all center on the good health of this year's corn crop, as the right combination of sun, rain and moderate temperatures has greatly improved the odds the U.S. could harvest record per acre yields that would top 2009's 164.7 bushels per acre by a considerable margin. The odds of a bumper crop being reaped this year keep climbing because corn in the big three states - Illinois, Iowa and Indiana - is entering the pollination stage. That pollination period is a critical stage in corn development.
As for market predictions, here are some of the latest for the U.S., the world's largest corn grower:
- Prices will drop to $4 in six months, predicted Goldman Sach Groups
(posted June 23).
- Grain will average $4.07 in the fourth quarter, projected Rabobank International (posted July 1).
- Corn could drop as low as $3.50, stated Dan Basse, president of AgResources Co., in Chicago, Ill.
- A range of $3.70 to $4.30 per bushel corn could be in store, pegged CreditSuisse (July 9).