Corn Markets Waiting For a Catalyst

The big question on everyone's mind, will the commodity markets rally? December corn recently dropped below 510 and has been down 11 of the past 12 months. Despite the extended stretch of low prices, there's still strong demand in a corn market, leaving many wondering when that will start to show Bryan Doherty, Vice President of broker solutions and senior market advisor at Total Farm Marketing, weighs in.

“We've been kind of in this trench of low prices forever. For example, December corn. So it is base building. We've got a market in corn that has seen good demand. And they're wondering when, when is that going to surface?”

Doherty discusses potential catalysts for a corn market rally,

“As our demand market has really developed this year, low prices have really generated good demand. The Southern Hemisphere continues to punch out a big, big second crop, surna corn, which is in direct and will be in direct competition with the US crop, and it looks like those estimates for the crop in Brazil are on the rise. Questions I'm getting, are, are we going to rally? Well, rallies take a catalyst, and we don't have a catalyst. The biggest catalyst that's right in front of us right now could be weather, and the weather's good enough. And so that's kind of where the market is right now.”

Bryan Doherty with Total Farm Marketing.