weather conditions should mean a bumper crop for corn
this growing season and keep the price of corn low,
most analysts agree.
year, it looks like we’re going to have favorable weather
in April and May for planting, which means that planting
progress likely will be better than the last few years
and better than the five-year average,” says Shawn Hackett,
president of Hackett Financial Advisors. “There’s a
likelihood that we’re going to see corn lower.” He says
corn could re-test the $3.30 area in mid-May on good
planting progress and higher acreage.
there’s no reason for this market to rally,” says John
Sanow, analyst at Telvent DTN. “We’ve got tremendous
supplies; it looks like we’re going to have a bumper
crop.” He expects corn to be somewhere between $3.75-$3.90
in May, unless there is a drastic weather event.
Garner, trader and analyst at DeCarley Trading, sees
heavy support in July corn near $3.50 and believes some
short-covering inspired by weather uncertainty is possible.
“Once you get into early June, you look to play the
short side. If the $3.80-$3.90 area is reached, we’d
be bearish from there,” she says.
Allendale Inc. vice president Joe Victor disagrees,
believing corn will go higher in May, though he expects
a solid crop will push corn back near $3 at harvest