WHAT NEXT FOR CORN AND SOYBEAN PRICES?
The soybean market had a two-day reaction to the generally negative information in the USDA’s March Grain Stocks and Prospective Plantings report and then proceeded to move to the highest level of the year. May 2003 futures traded to $6.08 and the average cash price in central Illinois reached $5.96. That price is $.02 above the 2001-02 marketing year high and is the highest cash price since the 1997-98 marketing year. The recent price strength is associated with the continuation of a high rate of exports and export sales and some late season concerns about wet weather in parts of South America. Last week, the USDA raised the export projection for the current marketing year by 35 million bushels. At 995 million bushels (1.005 billion if the additional residual use projection is included) the current projection compares to an early season projection of only 800 million bushels. USDA reports show current exports and export commitment above the level of a year ago, when shipments for the
