Commerz Bank has declared that it foresees a ‘moderate price recover’ for grains and oilseeds because of possible acreage adjustments in the Southern Hemisphere still to happen, weather uncertainties, and potential pressure on soybean planting in Brazil later this year. Commerz and other banks consider the recent plunge in corn prices to be exaggerated. Macquarie suggests future corn trading at between $3.75 and $4 per bushel and University of Illinois states that 2014 can expect an average price around $3.75 per bushel while Commerz predicts $4 per bushel. For soybeans, even though there was a recent announcement that the U.S. harvest will be bigger than first expected, it will still be at a 37-year low at 405 million bushels. In addition, the need for crop rotation in Brazil should curtain future soybean planting. Rapeseed should also recover with global stocks somewhat balanced as strong EU output will be able to offset a decline in Canadian production.
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