# The good news? Corn prices will stay low. Ready for the bad news?

> Analyst Dan Basse forecasts an average cash corn price of about $3.40 per bushel for the 2016-2017 crop year, assuming no major weather damage. He expects continued bearishness in cattle, with cash cattle bottoming around $95 to $97 per cwt. He also argued that the CME live cattle contract is undervalued and urged feeders to protect margins.

- Date: 2016-09-01 · published 2016-09-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8595-the-good-news-corn-prices-will-stay-low-ready-for-the-bad-news
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Low expected corn prices reduce feed costs for feeders, but abundant supplies keep cattle prices under pressure. Risk management matters given weak futures liquidity.

## Read by commodity

- CORN: bearish ▼
- LCATTLE: bearish ▼

## Sources

- beefmagazine.com: https://www.beefmagazine.com/cattle-market-outlook/the-good-news-corn-prices-will-stay-low-ready-for-the-bad-news-

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.