Corn futures prices are the highest in five months and “are expected to remain firm to slightly higher” for the near term, says economist Darrel Good of U-Illinois. Corn for delivery in March sold for $4.11-1/2 a bushel on Monday, Good said, the highest price since July 10 and 80 cents higher than the Oct 1 low. Writing at farmdoc daily, Good said the upturn in prices is attributed to a corn harvest that was slightly smaller than traders expected and forecasts by USDA for larger corn consumption than initially expected. On Jan 12, USDA will issue its quarterly report of the corn stockpile, which will indicate the amount of corn being fed to livestock, one of the main uses of the grain.
The futures price mentioned by Good is well above USDA’s current estimate of $3.50 a bushel for the average price for this year’s record-large corn crop, three months into the marketing year.