5-24 FB State of Corn

Clark Johnston is a commodities broker and owns an operation called JC Management company out of Utah. Agricultural economists and all kinds of experts had recommended throughout the winter and into the early spring that corn would be in high demand. So there was a recommendation to plant a lot of corn. So I called Mr. Johnston to get his take on corn. “The corn stocks were extremely tight meaning that we did not have any corn. In order to ration the crop, prices had to continue to rise and that was dragging fleet with it so  all the commodities were going higher. What that did was that bought some acreage and so the corn acreage this year, we are anticipating the harvest of about 5 million more acres of corn this year than we did last year. When we look at that with trend line yields, that brings us in with about a 14.8 billion bushel crop which is huge and by far a record. The last 2 years we have harvested a 12.4 billion bushel crop so we are going to have plenty of corn this year and in the meantime we I still tight on stocks on old crop corn and so the inverse in the futures between July and December is around $.90-$.92 and corn is getting extremely hard to find as far as corn to get us between now and harvest time.