Cratering prices for corn futures (ZCK24) have been a key storyline in the grain market this year, with the key ethanol ingredient down 10% YTD on the heels of its steep decline in 2023, as well. In response, analysts at Piper Sandler just downgraded a handful of agricultural chemicals stocks to “Underweight,” citing the potential for a bumper U.S. crop to drive down fertilizer prices.
Specifically, in a Feb. 29 note, Piper Sandler analyst Charles Neivert said, “Based on the data we have gathered, both anecdotal and absolute, there is a high probability that the 2024/2025 corn crop in the U.S. could become the largest in history and result in a sizable increase in corn ending stocks.”
