Grain prices are predicted to rise in the first half of 2013 before dropping in the second half as production recovers from 2012 weather challenges and creates a global surplus, according to Rabobank.
While prices have fallen somewhat from their summer highs, Rabobank said they need to rise again to slow demand and offset currently limited supplies. The high prices will in turn increase production, “resulting in a rebalancing of fundamentals and weaker price outlook in the second half of 2013,” said the bank.
Chicago Board of Trade corn prices are predicted to average $7.90 per bushel in the first quarter of 2013 and then fall 24 percent to $6 per bushel during the U.S. harvest in the fourth quarter of 2013. Front-month December corn on November 28 traded around $7.60 per bushel on the Chicago Board of Trade.
Soybean prices are expected to average $14.75 in the first quarter of 2013 before falling almost 12 percent to $13 in the fourth quarter of 2013, according to Rabobank predictions. Nearby January soybeans on November 28 traded around $14.45.
Chicago Board of Trade wheat prices are forecast to reach $9.10 in the first quarter of 2013 and then fall 23 percent to $7 by the fourth quarter of 2013. Nearby December wheat on November 28 traded around $8.80.