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Analyst sees short-term support for corn market
A market analyst expects the corn market to build support this summer, but sees some bearish signals later on.
Todd Hultman with DTN says coronavirus concerns seem to be easing, which has helped ethanol demand.
“It does appear like people are getting a little bit more confident about getting out and traveling again. That’s good news for ethanol. On the livestock slaughter, of course we’ve got those health and safety concerns at the livestock plants.”
He tells Brownfield the slaughter rate for cattle and hogs is getting closer to where it was before the pandemic.
But Hultman says new crop corn faces significant headwinds based on planting progress and predictions of beneficial growing conditions through July.
“Early planting is generally good for the corn crop in the fall. And if we do get cooperative weather, and the three month forecast just came out last week, and it looks like very good conditions for our crops through summer.”
If that holds true, Hultman says the 2020 U.S. corn crop could easily exceed 16 billion bushels.
