20.05.12

With tight stocks and steady demand, corn can't afford to give up acres next year, he states, noting that should "underscore prices through the winter," with additional volatility provided by weather concerns nearer to spring. However, Welch adds that if yield prospects return to normal and demand is constant, planted acreage near this year's levels will result in a significant increase in ending stocks. "Prices closer to $5, than $6, could be ahead in such a case," he adds.

Welch tells corn growers that "careful budget analysis will be needed this winter to evaluate pricing opportunities for next year's crop early in the season."

Welch, along with University of Illinois markets analyst Darrel Good, look at grain markets this week in the aftermath of last week's World Agricultural Supply and Demand Estimate (WASDE).

Good highlights corn prices back around where they were at the start of this year-and well below late-summer highs. Soybeans, he says, are well below where they started this year, and at their lowest since early October 2010. Soft red winter wheat has also softened in price-at its lowest level since July 2010.

Source: Agri-View