Goldman Sachs lowers forecast on soybeans, corn, wheat

Goldman Sachs lowers forecast on soybeans, corn, wheat

From WATTAgNet:This week, Goldman Sachs lowered its three- and six-month price forecast for soybeans on the Chicago Board of Trade (CBOT), according to a Reuters report. It also lowered its forecasts for CBOT corn and wheat, citing strong U.S. corn yields and a lower corn export forecast compared with the U.S Department of Agriculture’s outlook."Our price modeling and our updated soybean and corn U.S. ending stock forecasts point to the 2014/15 CBOT soybean-to-corn price ratio trading at 2.6 in coming months. We therefore lower our three- and six-month soybean price forecasts to $8.00 per bushel, well below the current forward curve," Goldman said.Goldman, which lowered the price to $8 per bushel from the spot price near $9, said soybeans are overpriced relative to corn, and given a jump in U.S soy ending stocks in the 2014-15 marketing year.According to a recent report from Tim Brusnahan, vice president at Brock Associates, the 2014 U.S. corn and soybean crop forecast will keep prices trending lower.“Domestically, livestock producers will be in a position where the two primary feed commodities — corn and soybean meal — will have a large supply, and the price has adjusted to those increased supplies,” Brusnahan said in his September 18 commentary.

Goldman Sachs lowers CBOT soy, corn, wheat price forecasts

Goldman said CBOT soybeans are overpriced relative to corn, and overpriced given an expected jump in U.S. ending stock forecasts point to the 2014/15 CBOT soybean-to-corn price ratio trading at 2.6 in coming months. We therefore lower our three- and six-month soybean price forecasts to $8.00 per bushel, well below the current forward curve," Goldman said.

Read more at Reuters

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