By Ben Brown, Department of Agricultural, Environmental, and Development Economics, The Ohio State University
The month of February represents the price discovery period for projected price of corn. The projected price represents the Risk Management Associations (RMA) baseline for establishing federally sponsored corn insurance products for 2019. The projected price for corn is the average of the February settlement prices for the December futures contract. The subsequent harvest price is the average of the October settlement prices for the same December futures contract. The projected price and the harvest price are used to identify the guaranteed revenue for revenue based crop insurance products. However, neither price takes into account local cash basis.
The projected price established by RMA for 2019 corn revenue is $4 per bushel. This is up $0.04 per bushel from the 2018 and 2017 projected prices of $3.96 per bushel representing the increase in corn prices during the last few months of 2018 after a drop during the summer months.… Continue readingRead More »