Corn will Drop Close to $2 Towards its Long Term Trend

The bean to corn ratio is extremely low so that calls for an increase corn production that will reduce corn prices and get that ratio to more reasonable levels. Oil is still going lower so that will reduce demand for ethanol because ethanol is increasingly uncompetitive. The past 100 years corn sees a bubble peak then bases for 10 to 20 years before spiking again, etc. We still have a long ways to go for new lows. The trend line the past 100 years is $2 so though we might not get to $2 we should come close for the ultimate bottom. Cattle prices are definitely coming down so with lower cattle prices that's less cattle and less cattle means less demand for corn.