Analyst: $4 corn possible
WATSEKA – Corn and soybeans have a good chance at rallying this fall, according to one analyst.
Merrill Crowley of Crowley Commodities in Watseka says we could see corn go back up to $4 and soybeans at $11 if certain factors come into play. Crowley says someone at RJO was forced to go with heavier ear weights because the corn ear count was the lowest is has been in four years.
Also, the Nebraska report showed a lack of population while farmer surveys suggested growers were happy with the amount of crop out in their fields.
“The only way the USDA could adjust is to have the ear weights higher,” Crowley told The Central Illinois Farm Network.
Crowley doesn’t see a population problem in Illinois or Indiana. If the ear weights are taken back to the 2014 weights, when we had the last bumper crop, corn production would actually lose 400 million.
Don’t get your hopes up for a strong rally just yet as the glut of harvest between now and a possible rally could keep pushing prices lower.
“The typical thing that happens this time of year is that you have a seasonal move lower in September and that would seem to hold true with what we’re looking at for crop size this year,” Crowley adds.
Crowley Commodities in Watseka can be reached at 815-432-2220.