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Showing posts from June, 2010

Chances for Crop Price Recovery

The prices of wheat and soybeans have been trending lower since late April and early May. Corn prices declined sharply last week. After moving to near $5.15 in early May, July 2010 wheat futures at Chicago are now near $4.35. Similarly, November 2010 soybean futures spiked to about $9.85 in late April and are now under $9.00, the lowest since last fall. December 2010 corn futures traded in a fairly wide sideways pattern during April and May, with a spike to just under $4.00. That contract is now near $3.55, the lowest since early September 2009. Recent price declines for all three crops continue the general downward trend that began in January 2010. "A record pace of consumption of U.S. corn and soybeans during the current marketing year and prospects for a much smaller U.S. wheat harvest in 2010 provided some price support earlier in the year, but are now overshadowed by other factors," said University of Illinois agricultural economist Darrel Good. "Crop prices have be