With the corn price hitting a record high, Iowa farmers are getting anxious about what that means for the futures market.
With the corn market hitting a new all-time high in January, the corn farmers association said on Tuesday that the futures markets are a good place to sell corn, but it’s not a great place to buy it.
“We’re seeing prices for corn increase because of a lack of supply, but they’re not the best place to purchase corn,” said Steve Bowers, the association’s president.
“I think that’s a good question, why would people in Iowa buy corn futures when they can buy it in a retail store?”
“If you’re going to buy corn, you’re better off getting it from a farm,” said Paul DeSantis, the Iowa Farm Bureau president.
Bowers says the corn industry has been suffering from a lack and lack of demand.
The Iowa Corn Growers Association estimates that a record-breaking 7.2 million acres of corn have been planted in Iowa since 2000.
That’s more than the state has ever planted in a year.
The average price of corn is $2.40 a bushel, according to the Iowa Corn Commission.
It was around $1.75 a bushell in 2014.
The corn futures markets will have a much different outlook this year.
Prices for corn in the futures will go up.
“The price of the corn will go down, and the price of futures will rise,” said Bowers.
The corn futures will have their own trading volume.
The futures market is also much less volatile than the stock market.
“We’ve been through this before, we’ve had two bear markets and this is the third,” said DeSants.