With history showing the corn market topping out only three out of the last 15 years in March, it's understandable why farmers are scratching their heads wondering if now is the time to sell or not.

On Wednesday, CBOT futures prices for December 2006 opened at $2.60 ¾. The CBOT March 2007 contract traded between $2.65 to $2.70 per bushel.

The run up in corn prices has been fund driven, fewer expected acres due to higher planting costs, the opinion there will be a lot more ethanol plants, and increased exports.

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As of March 2, 2006, corn export sales on the books, but not shipped, were 9.2 million tons, up sharply from 6.7 million a year ago, so prospects for shipments during the second half of 2005/06 are robust, according to USDA statistics.

"These are good prices right now," Jason Ward, North Star Commodity Investment Company, said. "I know a dry subsoil moisture level has had Illinois and Iowa farmers nervous. But, the recent rains should have relieved them a little bit about their planting prospects in April."

Ward added, "With these prices, one could make an argument we are drawing a lot of acres back toward corn."

With volatility taking a bigger role in the corn market, producers are urged more than ever to have some kind of plan to market their crop.

In an average calendar year, the corn market moves either $0.80 above the January price or $0.80 below it. So far this year, the corn market has moved just $0.25, meaning it's moved minimal and not even close to being over, Ward said. "This whole lets wait and see what tomorrow brings, corn prices could be $0.30 per bushel lower," Jason Ward, North Star Commodity Investment Company, said. "We are telling farmers to take a look at these current offerings in the market."

With historical corn prices averaging $2.72 per bushel, the current CBOT Dec. 2006 futures price is close enough to consider selling some crop, analysts said.

Ward offered a hypothetical scenario. If the year's high is $2.66 per bushel, which was made on March 3, and prices will move $0.80 either way by the end of the year, the downside on December 2006 futures is $1.85. If the fund investors decide to cash out their positions, that is a very likely scenario," Ward said.

Ward added, "On the flip side, hypothetically, if the low so far of $2.41 per bushel holds, then $3.21 corn would be possible. "With ethanol coming on, corn acreage down, and the wheat crop getting burned up in the Southern Plains, it's very possible."

On Wednesday, John Roach, Roach Ag, in a daily newsletter, addressed the unseasonably high prices by noticing the corn market's ability to find a bottom so quickly.

"I have a rule that I call my "ought'a rule". Here is the rule: If prices don't do what they ought'a do when they ought'a do it, pay very close attention to what prices actually do. Yesterday, prices ought'a gone down and stayed down. But instead, prices stopped going down - posting a higher close in a surprising reversal and clear violation of my ought'a rule. My confidence in additional corn sell signals at higher prices is increasing," Roach said.

Bill Gary, Commodity Information Services, sees long-term strength for the corn market. With the oil companies giving more attention to ethanol, Gary sees the industry entering the early stage of a major demand market. "The oil companies want to replace MTBE, a gasoline additive with ethanol. The energy bill props up demand for a number of years. Plus, China has shut off corn exports, forcing South Korea and the Asian countries to buy huge amounts from the U.S.," Gary said.

When asked, Ward said producers should keep a close eye on the funds investment activity. Right now, the funds hold a record large 160,000 contract position in the corn market. "I preach to my customers, when selling you want to be early rather than late. Because when funds decide to sell it's going to be too late. The best months to sell corn remain May, June, and July. But, the funds could change that if they take their position off," Ward said.