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USDA projects $3.30 corn

USDA's long term projections through 2023, released Thursday, show national average U.S. corn prices falling to $3.30 a bushel in the 2015-16 marketing year, before beginning a slow rebound that finishes out the decade at $4.20 a bushel.

The projection for the current 2013-14 marketing year for last year's crop is less bearish, with the farm price for corn estimated at $4.50 a bushel.

"Market responses to high crop prices in recent years, both in the United States and in other countries, are projected to lower prices over the next couple of years," says the report released by USDA's Office of the Chief Economist and compiled by the Interagency Agricultural Projections Committee. "Nonetheless, U.S. prices for corn, wheat, and soybeans are projected to remain historically high, above pre-2007 levels. The continuing influence of several long-term factors -- including global growth in population and per capita income, a low-valued U.S. dollar, increasing costs for crude petroleum, and rising biofuel production--underlies these price projections."

USDA projects farm-level soybean prices at $12.15 a bushel this year, falling to $8.85 a bushel in the 2015-16 marketing year and rising to $10.15 a bushel at the end of the decade (2023-24).

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