Corn prices are predicted to be at record high levels due to tighter-than-normal stock. Due to weakening of the US dollar, we can expect that demand for US exports will rise as well, but this effect will be offset by the larger worldwide supply of corn and feed competition. Overall, November production forecast is down from October and of last year, thus USDA’s lowering of this year’s corn yield and production will lead to a sustained, high average price of corn of $6/bushel for 2012/13 futures. We could expect that the higher prices of corn will lead to more people substituting wheat for corn, hence pushing up the price of wheat as well.
Mid week rain showers left fields too muddy to support equipment in some areas of the state which limited harvest progress once again, according to the Indiana Field Office of USDA’s National Agricultural Statistics Service. Ninety-six percent of the soybean acreage has been harvested compared with 100 percent last year and 96 percent for the 5-year average. By area, approximately 96 percent of the soybean acreage has been harvested in the north, 98 percent in the central region and 94 percent in the south. Moisture content of harvested soybeans continued to average about 12 percent.
Australia is having troubles with weather condition due to rain, since harvest is in progress. Thus, harvest delays are expected and closer look is needed to grain quality. Rain can cause poor quality of wheat, so, it means the price for Australian wheat will go down. Meanwhile, the US has good weather condition. In the Black Sea Region harvest was successful almost for all countries in this region. There is only one problem that Russia, Ukraine and Kazakhstan are facing. It is transportation problem, since the stock of wheat is tremendous and countries are trying to find alternative way of exporting, especially Kazakhstan (no sea). However, as expert (from UN) said that wheat in the world market is enough, the changes in price will not be dramatic.