USDA’s Corn price forecast and subsequent price action- 12/02/2020

The USDA forecast the average crop year farm price for corn of $4.00 per bushel in the November WAOB report. We have scattered the winter/spring summer high and low for Central Illinois Corn as a function of the USDA’s November average prices forecast. The studies have  respectable R2 statistics of 83% and 90%. The high study suggests a maximum of $5.00  At some point in the forecast period corn could be expected to drop back to near $3.50

These studies are association studies and not cause and effect, but they do provide a useful price guide based on USDA’s current price analysis.

Points marked in red are based on futures trading on December 2, 2020.