Senior grain trader predicts corn prices could fall to $2.50/bu
Corn and soybean prices fell to the lowest in at least two weeks on the Chicago Board of Trade as tumbling equities dimmed the demand outlook.
Cash prices of corn will probably drop 31% this year to below $2.50 a bushel, the lowest since October 2006, according Commodity Information Systems president Bill Gary and reported by Bloomberg. Gary has been trading grain since 1961 and correctly predicted in July that prices would plunge as credit tightened.
"This recession is going to last a lot longer than the one in the 1970s," hurting demand for raw materials, said Gary by telephone on March 26 to Bloomberg. "I don't see any major bull move in commodities in the next several years."
Corn slipped 0.75 cents to $3.8625 a bushel after earlier reaching $3.7675, the lowest since March 12. Soybeans fell 12.5 cents to $9.045 a bushel after touching $8.97, the lowest since March 16.