By Jon Scheve, Superior Feed Ingredients, LLC
This is the million-dollar question everyone wants to know. Unfortunately, no one knows the answer because the biggest driver of corn prices will be July weather and rainfall. Since no one can predict the weather accurately beyond two weeks, it is impossible to predict future prices for this fall.
For example, the following chart compares the current December corn market with the December contracts from 2012 and 2013. So far through April, prices have been pretty comparable for all three years.
For 2012 and 2013 this price consistency continued through mid-June. However, in late June there are dramatic differences. In 2012, dry weather forecasts started and continued into July throughout most of the growing areas. Conversely, in 2013 timely rainfalls in July led to mostly trendline yields throughout the Corn Belt.
Moving forward prices for 2023 could follow either 2012 or 2013 depending on several unknown factors:
For a repeat of 2013:
• The majority of crops need to be planted on time.… Continue readingRead More »