Fertilizer-maker CF Industries expects U.S. corn prices to range between $3.50 to $4 a bushel for the long-term, according to CF Chairman and Chief Executive Officer Stephen Wilson. He spoke at the Reuters Food and Agriculture Summit in Chicago on Tuesday.
"We know it (corn) is a commodity," Wilson said. "We know it will be lower than that at times, and will be higher than that at times, but it seems like we have settled into a range where it is high enough to provide incentive to farmers to plant, and it is low enough to make ethanol producers at least cash-positive."
Corn prices have fluctuated wildly during the past few years amid ethanol industry growth and concerns about crop size due to variable growing conditions around the United States.
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A year ago, Dairy Herd Management ran an article suggesting that the “new normal’ for corn prices would be in the $3.65- to-$4-per-bushel range. Read “Feed prices tethered by the economy.”