Large Expected Yields Drop Corn Prices to Lowest Number Since 2010
Thanks to a projected record corn harvest, corn futures reached a 34 month low this week.
According to a Bloomberg Businessweek article, farmers may harvest a record 13.95 billion bushels of corn this year (29% more than last year), dropping corn prices in Chicago to their lowest number since 2010.
Corn futures for December delivery settled at $4.605 a bushel early this week, after touching $4.56, the lowest number for a most-active contract since October 4, 2010. The low prices are in part due to recent cool weather and moist soil conditions across most of the U.S. (the world’s largest grower and exporter of corn), which are being well received by corn growers.
In the article, Rich Nelson, the chief strategist at Allendale Inc. in McHenry, Illinois, said, “We have another week of cool temperatures ahead, and some rains are going to hit the Corn Belt now through Wednesday. We do want some warmth to show up, maybe starting in late August or September, but that’s taking a back seat to this cool weather.”
The near-to-below-normal temperatures across most of the Corn Belt in the first half of August will likely continue to favor pollination, while soil moisture will favor southern and eastern areas, aiding overall corn production.
Corn production seems to be in a good spot following early planting troubles across most of the U.S., driving corn prices to the lowest number since October 2010.