How Low Can Corn/Barley Prices Go?

[errolanderson]

It's been a nasty slide in both corn and barley prices of late. Welcomed news for buyers . . . .

Traders appear to be dialing-in an average 170 bu/acre U.S. corn yield, but in reality, it could be much higher (IMO). This could continue to pressure cash corn prices. Key support on the weekly corn chart appears around $3.20/bu.

Barley has been in a steep dive in southern Alberta. $170/MT delivered in or bust around Lethbridge, maybe lower into harvest? But barley prices are now getting cheap enough that it might trigger export interest this fall.

The cure for low prices is low prices, but the path of least resistance for cash prices right now stills appears down.

[burnt]

David Kruse of the Commstock Report used to say "Markets go to where they hurt the most people the most..."

[errolanderson]

Market is trying to get a handle on the size of the U.S. corn crop.

FC Stone has now estimated the average corn yield at 175 bu/acre which translates into record-breaking 15.15 billion bu production this fall.

The U.S. corn crop remains rated 76% good-to-excellent.

This incredible corn production will continue to overhang Cdn feed grain values heading into fall/early winter (IMO).