Corn market participants have seen a steep fall after prices peaked in the Spring of 2022. Last year's planting season rally saw prices peak at $6.30 based on the new crop December 2023 futures. Many farmers/producers held onto their crops, anticipating higher prices. However, record production in the US and Brazil led to an oversupply, causing prices to plummet. Consequently, US corn storage on farms soared to a 16% increase over the prior year and hit an all-time high. Farmers now face storage costs amid higher interest rates while hoping for a price rebound, but with prices just above $4 per bushel and the break-even point slightly above $5.00, selling will need to be done on price rallies.
Are new 2024 December futures contract lows ahead?
