Prices are now very low. This seems to be operating right now in the corn market. Farmers are reluctant to sell their grain at these prices. If they hold tight waiting for high prices we will almost certainly see a fall rally. We probably will anyway.
Total demand is enormous.
The USDA now estimates over 9.8 billion bushels worth of demand for the coming year. They could be underestimating. Cheap corn has encouraged expansion of livestock herds as it is more profitable to add value to your corn by running it through a hog or steer. US herds are up and clearly foreign herds are up as exports are running very strong. Feed use is likely to be even higher than the last USDA estimate.