Average Texas cash corn prices hit $8 per bushel the first week of May, up from just under $6 per bushel in early March.
Mark Welch, AgriLife Extension grain economist, Bryan-College Station, said the market is highly speculative at this point due to a range of factors that boil down to tight supplies and high demand currently and uncertainty about domestic and foreign production this growing season.
A March U.S. Department of Agriculture survey report indicated U.S. producers were expected to plant 91.1 million acres of corn, which is up just 1% compared to last year. If those numbers remain the same and U.S. producers experience average to below-average yields, Welch said supplies will remain tight.
But Welch and Anderson expect growers to react to what the market is signaling and plant more corn acres than the March report indicated.
“That’s the question. The market is saying there is time to plant more corn for the December…