“The new ‘price era’ could last 20 to 30 years...”
could spike to as high as $6.70/bushel or drop down to $3.00. Soybean prices could average $11.50/bushel compared to $6.15 with a range of $8.20 to $19.00. Wheat prices may average $5.80, trading between $3.30 and $10.15/bushel in terms of season average. The new “price era” could last 20 to 30 years, led by corn prices, which will be linked more directly to gasoline prices because of ethanol substitution.
decades. Short-term fluctuations may continue but will be at comprehensively higher levels. According to the study by Darrel Good and Scott Irwin, titled The New Era of Corn, Soybean and Wheat Prices,
corn in Illinois could average $4.60/bushel at the farm gate for years to come, double the average of $2.42 between 1973 and 2006. During years when weather or other market variables intervene, prices
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Two Heads Are Better Than One
“BASF and Monsanto are the agriculture industry’s frontrunners in developing higher-yielding crops that are more tolerant to environmental stress,” says Steve Padgette, Vice-President of Biotechnology at Monsanto. “Of the total market for plant biotechnology, which we estimate will be US$50 billion in 2025, increasing and securing yield definitely has the most business potential and impact. We will pioneer this segment with our first drought tolerant corn product to be launched after 2012, targeting yield advantages of 6-10 %,” adds Hans Kast, BASF President and CEO. The companies announced a R&D collaboration 18 months ago in biotechnology aimed at delivering higher-yielding seed products to farmers. Within the collaboration, which focuses on the four main crops corn, soybeans, cotton and canola, Monsanto and BASF have already exchanged hundreds of gene constructs resulting in an enlarged gene pool with less than 10% overlap.
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