Wheat prices that have dropped 19 percent this year will probably trade below corn on ample supplies from Russia, Canada and Australia, Commerzbank AG said.
Wheat prices below those of corn is “a situation which should not be unusual in the future,” Commerzbank said in a report today. Wheat may average $7.20 a bushel in 2012 in Chicago compared with $7.30 a bushel for corn, it said.
“Corn and soybeans have most recovery potential due to their relatively tight supply,” according to the report.
Wheat this year averaged $7.396875 a bushel, higher than corn’s $6.8875 a bushel. Milling wheat traded in Paris will average 210 euros ($286) a metric ton, Commerzbank said. It has averaged 222.10 euros a ton so far in 2011.
Soybeans may average $14 a bushel in 2012, Commerzbank said. It has averaged $13.456875 a bushel so far this year.