U.S. corn prices may drop by about 10 percent and soybean prices by 5 percent with favorable weather, Jay O’Neil, a researcher at Kansas State University, said in an interview.
Prices of U.S. grains, including wheat, corn and soybeans, are "too high" right now because supply is abundant, he said in Xiamen, China, where he is attending a conference. Crops have a higher value in the U.S. compared with other countries’ supplies because of fund investment, he said.
The grain market is watching how wet soil is for planting at the moment, said O’Neil, who is affiliated with the U.S. Grains Council. The market will get "jumpy" if the weather worsens, he said.
Corn for May delivery on the Chicago Board of Trade fell 0.5 percent to $3.7425 a bushel today and soybeans were down 0.3 percent at $9.57 a bushel.
Source: Business Week
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