The fertilizer price sticker shock is also happening with nitrogen. Ken?Ferrie says nitrogen prices were already moving higher, but the Texas freeze didn't help, as it put a further strain on production.?
While analysts say it’s possible, yet not likely corn prices hit $18 per bushel, there are some factors fueling the market today. It’s not just the supply and demand scenario, but also the possibility of inflation.
USDA’s Ag Outlook Forum painted a brighter forecast for corn demand this year. While USDA does expect a 7% increase in production,?the agency is also forecasting an increase?in domestic use, as well as exports.
USDA issued its first look at acreage during the annual Ag Outlook Forum with a record number of combined corn and soybean acres projected this year. Some analysts say given prices, that number has room to grow.