As huge corn crop looms, corn futures hit new contract lows

In the US, nearby corn futures have seen new contract lows, with low prices benefitting end-users like ethanol producers, causing unusually high margins. With the big crop looming, new crop carry-out is expected to increase but low prices will encourage future demand in 2015.

Despite the lows, various private analysts have released final yield estimates with many predicting a national yield above the 170 bushel per acre mark. The USDA released the August yield figure at 167.4 bushels per acre, and most traders expect that number to rise.

A cool, wet fall as expected could push prices back to the $4 mark.

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