March 24, 2005

US corn and soybean price stability dependant on upcoming reports

The US corn and soybean markets are currently heavily influenced by Brazilian crop prospects and speculative trading activity, said a University of Illinois Extension marketing specialist.

However, a 2 percent increase in corn acreage and a 3 percent decline in soybean acreage combined with trend yields--about 145 bushels and 40 bushels, respectively--would provide adequate supplies for the 2005-06 marketing year, said Darrel Good

"Without surprises on March 31, the next move in corn and soybean prices will likely be associated with expectations about average yields in 2005. Those expectations will begin to be formed by planting season weather and will be molded by weather and crop developments as the growing season progresses. Periods of concern will provide pricing opportunities."