History could be on side of higher grain prices
History could be on the side of higher grain prices as the market slide continues.
University of Minnesota grain market economist Ed Usset says over the past 20 years, a yearly high for corn prices set in January has occurred only three times with new crop futures.
“A little more often in the soybean world, cash prices also just four times have we set the high in January. That means 16 to 17 years we’ve found a way to go higher in the April, May, June period.”
He tells Brownfield he’s not sure what might lift the market.
“I have no idea. All I know is that this is not the first bear market we’ve seen in the last 20 years, and we have found a way to rally.”
Usset says that has often occurred in the spring.
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Author: Mark Dorenkamp