Source: Kansas State University

Prospects for higher U.S. corn or old crop soybean markets faded somewhat when the USDA reported Jan. 12 that U.S. farmers produced record-large corn and soybean crops in 2009, according to a Kansas State University agricultural economist.

"In analyzing the current state of the grain market, there is no escape from the fact that world wheat, coarse grain and oilseed markets have and are now trending toward increasing supplies," said Dan O'Brien, agricultural economist with K-State Research and Extension. "Under normal market circumstances, increasing grain and oilseed market supplies would bring about lower prices as the market finds price levels low enough to 'clear the market' and move supplies from those who own grain to those who need it."

Original press release.