If the USDA is anywhere near accurate with its forecast for a record year harvest of corn in 2016, one may see the price of corn futures violate the technical support level @ $300. If so, this would be psychologically damaging and send it to test support near the range of $250-$260.
Estimates are calling for production @ 14.8 billion bushels, which represents an increase from July’s forecast @ 14.5 billion. Being cursed with good weather for crop conditions has led to falling prices, which is further exacerbated by farmers planting more to make up for lost revenues. Below is a monthly chart of the latest corn futures contract and a reference link to related sources.
For more details, refer to the Wall Street Journal’s recent article on USDA estimates for corn yields.