Some of the corn futures contracts traded dangerously close to the $3 mark. Analysts say the last time the front month corn contract traded that low was during the recession.
Analysts are saying corn is reflecting what's happening with the crude oil and ethanol markets.
The last four times the front corn month contract, which is currently May, traded below $3 was more than a decade ago, says Ted Seifried, vice president and chief market strategist for Zaner Ag Hedge.
"That was Sept. 8, 2009; Dec. 8, 2008; Dec. 5, 2008; and Oct. 5, 2006,” he says. “We really don't spend much time below $3 – hardly ever."...
Analysis from the National Corn Growers Association (NCGA) shows cash corn prices have declined by 16% on average, with
several regions experiencing declines of more than 20% since March 1 as a
result of the COVID-19 pandemic. The analysis projects a $50-per-acre revenue decline for the 2019 corn crop.
The analysis, which was conducted by Gary Schnitkey of the University of
Illinois, was based on cash corn prices as of mid-April and estimated
losses that would likely increase through the rest of the marketing
year...
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