• Post to Your Wall.
 

Corn and soybean prices seeking support

While corn and soybean prices have declined sharply from their peaks, prices are still very high by any measure, says U of I's Darrel Good. The pace at which prices transition to lower levels will be determined by a number of factors, beginning with the USDA's October production forecasts.
Compiled by staff 
Published: Oct 9, 2012
December 2012 corn futures declined by $1.44 (17 percent) from the high on August 10 to the recent low on September 28. Good says the contract has managed a recovery of about $0.40 so far this month. November 2012 soybean futures declined by $2.85 (16 percent) from the high on September 4 to the low on October 3 and have rebounded about $0.45 since then.

Prices over the past two months for corn and the past month for soybeans appear to be in the classic "short crop, long tail" pattern where prices peak early in a year of sharply lower production and then decline in the post-harvest period as the smaller supplies get rationed and production rebounds in the following year. "A change in the trend of lower prices will require an additional supply shock or evidence that supplies have not been sufficiently rationed," Good says.



Permalink: Click here

Comments
Read comments from others and share your own thoughts.
Please provide the answer to the following question:

 = 
 
Search this site:   

Read More Stories
Informa estimates a 14.8 billion bushel corn harvest this fall
Informa Economics releases its estimates for next week's USDA Planted Acreage report.
Read this story

Oppose harmful amendments to farm bill
IFB's latest action request on the House farm bill includes comments from President Philip Nelson.
Read this story

Corn fiber fueling cellulosic reality?
NCERC chief sees EPA approval opening biofuels 'vault.'
Read this story

   
Illinois corn is 99 percent planted
Oppose harmful amendments to farm bill
Governor signs comprehensive hydraulic fracturing law
Corn fiber fueling cellulosic reality?
River levels rise, though not as high as thought
FarmWeek for June 17
Senate clears farm bill: Crop insurance, bioenergy House targets?
Ag and Transportation Industry Collaborate at Summit
WIU Agronomy Field Day June 27
FarmWeek for May 20
Top 50 Tags
   
iNet Solutions Group   Powered by iNet Solutions Group   ©2013 All rights reserved.