We’ve discussed before how there will likely be whole research projects centred on the 2022 December corn futures contract.
The contract has finally settled in to a range, but that has analysts and farmers alike wondering what it will take to crack this crop to the up — or down — side.
To tackle that question, we go to Jim McCormick, co-founder of AgMarket.net. McCormick says the answer is likely on the supply side of the equation.
“We know where the U.S. carryout is: it’s relatively tight in the world. We know what the world is gauging out in the moment both for corn and beans right now with South American weather,” he says. “If it starts getting in the sense that the Argentina corn crops going to fail…that’s probably what’s going to allow this market to break out to the upside.”
That said, key decisions this week by the U.S. Fed and other economies regarding interest rates and the dreaded “R” word (recession). If a global recession happens, demand falters. That may be what breaks us out to the downside, he says.
Listen on for the full discussion by Jim McCormick and RealAg Radio host, Shaun Haney: