Does the corn market have a floor?
Ag commodities have followed equity markets down in response to the COVID-19 pandemic.
For corn, University of Illinois ag economist Todd Hubbs says he has no idea where the bottom might be.
“It’s down there. We’re seeing the May contract close at $3.36 1/2 (Wednesday), and there’s still some downside there depending on how we see ethanol play out.”
He tells Brownfield the energy sector is buckling under collapsing oil and gas prices.
“And corn is getting caught in it because of ethanol margins. I personally think they encapsulated all that in the current prices, but we’re in just a fear factor and uncertainty level right now. So I have no idea how far down it can run.”
Hubbs says if the U.S. recovers from the outbreak relatively soon, he’s optimistic underlying demand fundamentals can support higher corn prices.