September 27, 2011

US 2011-12 soy, wheat price forecasts reduced

Agricultural commodity prices will experience a downside risk amid increasing concerns of economic recession, Morgan Stanley said, reducing its 2011-12 wheat and soy price outlook.

"Concerns of the EU contagion have tempered the upside, particularly in soy and wheat," the brokerage said.

Morgan Stanley now expects 2011-12 soy prices at US$14.25 a bushel, from US$14.50 a bushel earlier, and wheat prices at US$7.50 a bushel from US$8.25 a bushel earlier.

The brokerage also cut its 2012-13 wheat price forecast to US$7 a bushel from US$8, but kept its soy price forecast for the same period.