Corn Market Firms

After slamming to a seven-month low at the end of March, corn prices climbed for seven consecutive trading days, recouping half of the market’s recent losses.

Prices collapsed after a USDA report projected a sharp increase in corn acreage, but many farmers and traders are skeptical about the government’s forecast.

Some farmers may still shift away from low-priced corn and plant more profitable soybeans, which could reduce overall corn acreage. Meanwhile, the corn is not in the ground yet, and there are concerns that much of the Corn Belt could be too wet to plant the crop quickly.

The market’s quick drop under $3.50 per bushel encouraged bargain-hunting ethanol plants, livestock feeders, and investors to load up on cheap corn, as many expected the “price floor” of $3.50 to hold as it has on numerous occasions.

As of midday Friday, corn for delivery in May was trading for $3.62.