How high will corn prices go?
That question, of course, is nearly impossible to answer. Corn prices are already at levels that seldom occur. There is little past history to base price projections on. While tight supplies and concerns about adequate production have occurred before, rapidly expanding ethanol production and index funds are among some of the factors that are “new to the ballgame.” Now that $4.00 has been broken, some may target $4.50 (a nice round number). Others may target the previous highs of 1996. But prices may not reach these levels or, if they do, may not stay that high for very long. A seasonal corn price high usually occurs about March or April, which is near the March 31 USDA Prospective Plantings report. This year, the market is likely to anticipate this report more than ever. If intended corn acreage indicates the needed 8-10 million acre increase, then a market high could occur. If acreage intentions are disappointing, prices could surge higher to further encourage producers to make last m
