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CattleFax foresees stable corn prices in 2016

Cattle marketing advisory firm Cattle Fax predicts spot corn futures prices will average $3.75 per bushel in 2016, virtually the same as last year.

Speaking at the recent CattleFax outlook session in San Diego, analyst Chad Spearman said a major production issue this summer could alter that prediction. But in the short-term, Spearman expects the corn market to stay fairly quiet through April of this year.

“If we see stocks-to-use levels from 11 to 13 percent, that’s going to keep major resistance for spot corn, the front futures month, around 4.00 to 4.10 per bushel—and maintain the risk back toward 3.35 to 3.45 going on forward into the spring,” Spearman said.

Spearman expects increases in both corn and soybean acreage this spring.

“Our estimate in here for 2016 is to gain about a million-and-a-half acres of corn and a little over a million acres for soybeans,” he said.

Spearman said total wheat acreage is expected to decline sharply—down 2.7 million acres—largely due to reduce winter wheat plantings.

Spearman discussed the grain and energy outlook during his CattleFax presentation.

AUDIO: Chad Spearman