Farm Credit Canada's Chief Economist suggests a growing supply of corn may drive prices lower even as exports and feed usage expand.
That was one of three takeaways J. P. Gervais says he has from the latest WASDE report.
Another is that the pace of soybean exports and crush should increase next year, stabilizing prices at a profitable level.
And Gervais says a projected fall in wheat production may not be enough to prevent prices sliding from 2015-16 levels.
The FCC economist says his major concern about corn prices is the stocks-to-use ratio.
A high ratio indicates more available supply compared to demand while a low ratio indicates less of a gap between supply and demand.
Gervais says the corn stocks-to-use ratio will jump from this crop year's 13 point 3 to 15 point 2 for the 2016-17 marketing year end.
The WASDE report forecasts lower corn and soybean prices than what the futures markets currently show for December corn and November soybeans.
