Home / News / Business news / Sharp corn, soybean price drop ahead, firm says

Sharp corn, soybean price drop ahead, firm says

06/13/2013 @ 1:06pm

Goldman Sachs lowered its price forecasts for U.S. corn and soybeans over the next 12 months, saying that domestic supplies will grow unless there is "a significant weather shock."

The firm set its three-, six- and 12-month corn price forecast at $4.75 a bushel, which it said was down from a prior forecast of $5.50.

It lowered its forecast for soybeans during that time period to $11 a bushel. While the firm did not specify its prior forecast, a May research note had projected soybean prices at $12.50 a bushel.

With large South American crops and weak global consumption, stockpiles are likely to rebound under most weather scenarios, Goldman Sachs said.

It added that under its "base case" scenario for supply and demand, it expects corn to fall as low as $4.25 a bushel while soybeans drop to $10.

"As a result, we currently view the downside potential to agriculture prices as the largest opportunity across the commodity markets we cover," the firm said.

Grain and oilseed prices surged after last summer's U.S. drought, which has created historically tight corn and soybean supplies heading into the fall harvest.

July corn futures at the Chicago Board of Trade were recently down 7 1/2 cents, or 1.2%, at $6.43 1/4 a bushel, while December corn was down 3 1/2 cents at $5.34.

July soybean futures were down 28 3/4 cents, or 1.9%, at $15.12 a bushel, while November soybeans were down 19 cents at $12.95 1/4.


Write to Ian Berry at ian.berry@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
June 13, 2013 13:52 ET (17:52 GMT)
DJ Goldman Sachs Sees Corn, Soybean Prices Falling Sharply->copyright

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

Soybeans hit 8-month highs as processing… By: 04/15/2014 @ 3:31pm Soybeans jumped to the highest price in more than eight months after an industry report showed the…

Goldman Sachs is Bearish Wheat By: 04/14/2014 @ 10:01am Goldman Sachs (GS) Monday said increases in grains futures from ongoing Ukraine tensions would be…

USDA Report Summary By: 04/09/2014 @ 11:17am The following table is provided as a service to Dow Jones Newswires subscribers in conjunction…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Big Picture: CME Trading Weather