Todd Davis, Extension Economist, University of Kentucky
The potential for farmers to lock-in corn profits with a cash-forward contract has been limited since March. The cash corn price for October delivery has been working steadily lower since the March 31st Prospective Plantings report (Table 1). The average corn price is $0.30/bushel lower from the March 27 price and about $0.16 lower from last month (April 18). Unlike soybeans, cash corn bids were not rocked by the May WASDE and have increased $0.07/bushel above the May 12th cash bid price (Table 1).
The potential for farmers to lock-in corn profits with a cash-forward contract has been limited since March. The cash corn price for October delivery has been working steadily lower since the March 31st Prospective Plantings report (Table 1). The average corn price is $0.30/bushel lower from the March 27 price and about $0.16 lower from last month (April 18). Unlike soybeans, cash corn bids were not rocked by the May WASDE and have increased $0.07/bushel above the May 12th cash bid price (Table 1).
