VOLATILITY in grain and oilseeds markets is expected to continue into 2013, according to a new report.
Rabobank's Agri Commodity Markets Research department today released a report forecasting high grain prices in the early half of next year before weakening later in the year.It states grain and oilseed prices are forecast to rally due to tight demand after poor crops in the US and South America.
"Higher prices early in the year will also encourage record plantings of row crops in the US during 2013. Prices are expected to fall in the second half of 2013 as production rebounds," a statement reads.
Soymeal prices are expected to show the largest price decline by the end of 2013, the bank forecasts.
According to Rabobank data, global cotton prices will plateau at the start in 2013 as the market faces its largest ever period of oversupply.
Soybean prices are expected "to remain supported" in the first quarter of 2013 due to tight supplies before declining as production rebounds later in the year.
CBOT wheat prices are forecast to rise to USD9.10/bushel in the first quarter of 2013 and then fall 23 per cent to USD7.00/bushel by the end of the year.
