Monsanto executives this week said the company expects corn prices to rise in 2016. However, they added the majority of its growth will come from new products and expanding its reach to new markets, according to Reuters. Monsanto held investor meetings earlier this week. The company expects corn prices will recover to $4.50 a bushel in the next 8 to 12 months from less than $4 currently.
That comes just a week after USDA cut its price outlook for the marketing year by 15 cents a bushel to a range of $3.35 to $3.95 a bushel. That forecast comes as corn prices are amid a steep downturn, as with other commodities, sitting at multi-year lows. Eighty percent of Monsanto’s earnings over the next three to four years are expected to be from innovation such as newly developed products. The remaining 20 percent is tied to the price of commodities like corn and soybeans.