A Drovers article
Corn prices saw their biggest August rally since 2010, and two veteran market analysts say $6 corn now a real possibility before year’s end. But if corn blows past $6, then prices could have a shot at $7. For livestock producers, that’s not just a headline number. It’s a feed bill.
With corn and soybean meal prices climbing on tightening global supply and rising geopolitical risk, feed users who haven’t locked in a meaningful share of their 2026 and 2027 needs could be staring down a very different cost structure than the one they budgeted for just months ago.
Dan Basse, founder and president of AgResource Company, and Chip Nellinger, founder and partner of Blue Reef Agri-Marketing, say the rally isn’t just from supply concerns here at home. Both say when you look at the explosive run in grain markets, it’s being driven by shrinking U.S. yield prospects, tightening global supplies and rising geopolitical risk out of the Black Sea. But now there’s concerns over what El Niño will bring, and that’s where $7 corn could come into play.
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