US corn prices may drop 10%

US corn prices may drop by about 10% with favourable weather, Jay O'Neil, a researcher at Kansas State University, said.

Prices of US grains, including wheat, corn and soy, are "too high" right now as supply is abundant, O'Neil said. Crops have a higher value in the US compared with other countries' supplies because of fund investment, he said.

He noted that the grain market is watching how wet soil is for planting at the moment, adding that the market will get "jumpy" if the weather worsens.

Corn for May delivery on the CBOT fell 0.5% to US$3.7425 a bushel earlier and soy were down 0.3% at US$9.57 a bushel.

Meanwhile, O'Neil said that soy prices are expected to decline 5%.