Both old crop and new crop corn futures are currently testing support levels defined by the January and March lows. Prices are hovering about 30 cents above the fall lows, or the lows established on October 1st. Depending on who you talk to and the basis at various points in the Midwest, corn prices are approaching cost of production for many producers. A benchmark cost of production is perhaps $4.00? December futures are trading near $4.00 and with a 30 under basis for new crop corn you're talking current prices well below cost of production. Keep in mind that prices don't have to stop going down because they're below the cost of production. That's not my point. My point is that decisions can and will still be made in regards to acreage devoted to corn production in the U.S. this year.
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