Spencer, IA: (Feb. 20, 2014) – USDA’s top economist predicts corn prices will return to 2009/2010 levels of about $3.90 per bushel as stocks rebuild and in anticipation of another large corn crop this year.
Chief Economist Joe Glauber says soybean prices are expected to decline to $9.65 per bushel as U.S. and South American production swells. The average wheat price is expected to decline to $5.30 per bushel.
Glauber sees increasing use of corn for ethanol, but he says the rate of growth depends on how well higher blends of ethanol penetrate the market and how much gets exported.
Glauber says, “Obviously a lot of that will rely on the price of petroleum and the underlying feedstock price of corn.” And, he continues, “I would contend that those two can’t get too far out of balance before you see more corn being converted to ethanol and competing in that market.”
Glauber added that expansion in the livestock sectors will also mean more demand for corn for feed and cushion the move to lower prices.