This analysis was prepared using end of day data from May 31st, 2019. All indicators and valuations reflect the same.
Quick Take
-BULLISH- Flooding and wet weather is wreaking havoc across the Midwest, posing unprecedented production risks for this year’s US corn crop. A significant draw on US corn stocks out of storage seems inevitable. I estimate fair value on the July corn contract could achieve prices between $4.25 and $6.25. The level is dependent on the planting, yield, and scarcity scenarios discussed below. While the current price has already risen to the lower end