Rising surpluses are leveling out and keeping corn from falling much further. With help from the USDA and rainy harvest time weather, mid October saw corn break its long, brutal decline. It rose to near US$3.60/bushel, some 13% above its early October lows. Nevertheless, medium term fundamentals still point to flat, sagging prices.
Soy is not just in oversupply; it faces intensifying competition from oilseed alternatives such as palm oil and rape seed. While corn's deflation is (barring a liquidity crisis) currently bottoming out near US$3/bushel, oilseeds appear to have more deflation headed their way.