Much of the discussion in the corn market, and commodity markets in general, has become focused on the potential for a protracted period of low prices and the likely impact on farm incomes and land values. 

There even appears to be some competition relative to who can forecast the lowest corn prices for next year and beyond. This is just opposite the situation of a year ago when the drought-reduced U.S. crop invoked forecasts of extreme prices on the high side.

While the corn market sentiment seems to have become very negative for price prospects over an extended period, the futures market is actually offering higher prices for the 2014 crop than for the 2013 crop and even higher prices for the 2015 crop.  

At this writing, December 2015 corn futures were trading $0.52 higher than December 2013 futures. Prices for the 2016 crop are also higher than prices for the 2013 and 2014 crops. 

 

Check current corn futures prices

 

The premium for 2014 and 2015 crops seemingly reflects the “carry” in the market stemming from the large 2013 crop and prospects for large stocks at the end of the current marketing year. The premium of deferred futures within the current marketing year is consistent with the expected price pattern when production is large.