What Does It All Mean Regarding Corn Prices?
It’s my opinion that corn prices will move higher in a two-fold attempt to slow demand and to assure that producers will expand acreage devoted to corn production next year. The weekly corn chart shows that we’ve basically been in a range from $3.25 to $4.25 over the last year and a half. At these usage rates, I believe it’s very unlikely we’ll see corn prices in the near future back down toward the low end of the range. In fact, I believe it’s highly likely that corn prices, in the short term (meaning before harvest) will test the $4.25 resistance level. If this resistance is taken out, we’ll then test the major resistance at $4.50. I would not expect $4.50 to be penetrated until after harvest. I’m holding bullish positions in the corn market in both options and futures for my customers. The livestock producer, especially the hog and poultry producer appear to be very vulnerable to rapidly rising corn prices. If you’re not satisfied with your current brokerage relationship give me a c
