It's not unusual for corn end users to feel the squeeze later in the summer as old crop supplies dwindle. But, as AgweekTV's Michelle Rook and Randy Martinson of Martinson Ag Risk Management discussed on this week's Agweek Market Wrap, that squeeze already is happening.
And that means the price keeps going up.
"The commercials need it, they want it, they're trying to bid for it, but nobody is delivering it," Martinson said.
He expects prices will go up farther, possibly testing the $7.4875 high from 2013 and maybe even the $8.4375 all-time high set in 2012.
While corn was pushing higher, overall the week was another volatile one.
"It was another roller coaster," Martinson said.
Soybeans have taken a backseat to corn, but it remains strong on the demand for soybean oil. Rook said soybean oil's strength is coming from both human consumption and bio energy needs.
Cattle, especially feeder cattle, felt the pressure of the strong corn market this week. But boxed beef is at an 11-month high, Rook said, and Martinson said New York's potential reopening in July could charge demand.
Plus, the hog market remains strong on tight supplies, and that should help the cattle market, too, he said.