Good news for everyone: The price of one of the most important food in America's diet is headed down.
With recent rainfall in America's heartland, the United States is now expecting a record corn crop and that's brought prices down. Corn closed Tuesday at $3.64 per bushel. That's a steep drop compared with record highs of $8.40 per bushel set exactly two years ago this week. Prices on the grain haven't been this low since 2010.
According to Gina Sanchez, founder of Chantico Global, the repercussion will be felt throughout the economy. That's because corn isn't just found on the dinner plate; it's also a major input in food products and is more than 95 percent of feed grain, according to the U.S. Department of Agriculture.
"This matters a lot to the economy," said Sanchez, a CNBC contributor. While more supplies may now be growing, demand has been falling for some time because of previously high prices, she said. Lower prices may bring back some corn consumption and "on balance, this is great for the consumer."
And prices may go down even further, according to the charts of Todd Gordon, founder of TradingAnalysis.com.
"The downtrend is well intact," said Gordon, a CNBC contributor. "What's significant is we just broke a very simple support level. It was tested twice right around $4.33 [per bushel]. What was supposed to have held as support which is broken now serves as resistance. I think that sets up a trade down to that 2010 low around $3.33."
But Gordon thinks there is another factor besides weather bringing down corn and it's one that may offset some of the gains from cheaper food prices. "Another factor pressing commodities–not only agriculture but commodities across the board–is a strengthening dollar, which is not good for the U.S. consumer," he said. "We're getting a U.S. currency breakout, which is pressuring commodities across the board."
To see the full discussion on corn, with Sanchez on the fundamentals and Gordon on the technicals, watch the above video.