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Corn market in “balancing act” tips above $5

The corn market has slowly climbed back to the $5 level.

Market analyst Naomi Blohm with Total Farm Marketing tells Brownfield prices had been trading in a narrow range with support around $4.65.

“We didn’t at the time have really a reason to get above $5. We were waiting to see what harvest yields were going to be, we were waiting to see if demand would pick up (including) ethanol demand.”

She says futures prices are moving higher on lower-than-expected corn yields and investor funds exiting short positions.

“They were short over 100,000 contracts, and that was just weighing on the market price as well. But now with two wars happening around the world, they are starting to take some of those profits and exit short positions. So that’s helped move the market higher.”

Blohm describes the corn market as a balancing act right now with good ethanol and feed demand countered by a projected two-billion-bushel carryout.