The price of corn fell slightly, after a week in which grain prices surged as the supply picture tightened.
The first catalyst for soaring grain futures began several months ago, with the export ban from Russia. Both the Ukraine and Russia suffered major losses as a result of searing temperatures and drought across the Black Sea region, and compensated by cutting back or outright banning exports.
Then, this month saw a new report from the U.S. Department of Agriculture, which projected that corn crop yields may fall dramatically in the 2010-2011 harvest season. After a dramatic run-up, corn futures for December delivery eased slightly Monday, falling 6 and 1/2 cents to trade at 556 and 3/4 cents per bushel.
December wheat futures lost 11 and 1/2 cents to trade at 693 cents per bushel, while December soybean futures dropped 5 and 3/4 cents to $11.79 and 1/4 per bushel.
Still the prices are far higher than anyone would have projected at the beginning of 2010 – and it's a big windfall for American farmers, who will pick up and fill in the deficit in supply left by Russia and the Ukraine.
"I am very bullish on farm commodities for the next many years," Agco chief executive officer Martin Richenhagen told Bloomberg News in an interview.
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