$6 Corn Now Possible as Rally Shows No Signs of Slowing

Corn prices have been rising rapidly, with a significant increase in August. According to Dan Basse and Chip Nellinger, veteran market analysts, $6 corn is now a real possibility before the year's end, and if corn blows past $6, then prices could reach $7.

For livestock producers, this means a potential sharp jump in feed costs, which could be devastating given their already tight margins. The rally in grain markets is being driven by shrinking U.S. yield prospects, tightening global supplies, and rising geopolitical risk out of the Black Sea.

The analysts point to concerns over what El Niño will bring as a possible trigger for $7 corn. Basse notes that there's a real path to $7 if there are any hiccups in Latin America, particularly with record-warm conditions tied to a potential super El Niño.