Soybean, corn prices to fall sharply: Mecklai graph

Mecklai graph of the day: Fall in agri commodities

Revisiting our graph earlier sent on May 28, 2013 on Commodity Cousins wherein the prices of soybean were on a rise while the prices of corn were seen tumbling. In latest developments to the graph, prices of both the commodities are plummeting as we had mentioned in the earlier graph.

The price in corn has been easing due to larger than estimated inventories of the crop and rise in the global supplies which have reduced demand for U.S. corn, while frequent rainfall and warmer weather boosted growth in soybeans planted in recent weeks. Separately, a report issued by US Agriculture Department sent the prices lower as it said that the US farmers will harvest the largest corn and soybean crops ever this autumn even as existing supplies continued to tighten.

From the above stated requisites, it can be assumed that both Soy and Corn crop can witness a sharp drop in their prices ahead.

The below graph shows the prices of soybean and corn from Jan 2013

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