Morgan Stanley reduced its price forecasts for corn, soybeans and wheat because global surpluses are larger than expected and said rates will probably fall to a level that may curb supplies in high-cost producers like Brazil.
The bank cut its estimate for corn to $3.90 a bushel in 2014-2015 from $4.35 in October and for soybeans to $9 a bushel from $10.10, according to analysts Bennett Meier and Lee Jackson. Wheat was lowered to $5.40 a bushel from $5.75. The latest forecasts were issued in a report dated yesterday.
