Corn prices may see increased volatility going forward according to Iowa State University economist Robert Wisner. The comments were made to producers gathered at the World Pork Expo held June 3 through 5 in Des Moines, Iowa .

Corn prices will depend heavily on weather patterns, global oil price and a possible increase to E12 or E15 ethanol use for conventional cars and its resulting additional demand on corn.

For the general economy, Wisner sees a trend toward a weaker dollar, increasing inflation and higher interest rates. Wisner points to huge U.S. budget deficits and potential cap and trade legislation as driving forces for those predictions.

The economist sees a sharp drop in South America grain production which he expects to lead to tighter world supplies. As a result, producers may face a renewal of volatile corn and soybean markets this summer.

Based on a yield of 155.4 bushels per acre for the 2009/2010 corn crop, Wisner projects a U.S. weighted average farm price of $4.25 per bushel.

As for soybeans, Wisner said that supplies are tighter than any time since 1965. Based on a yield of 42.8 bushels per acre for the 2009/2010 soybean crop, Wisner projects a U.S. weighted average farm price of $9.50 per bushel. However, producers should expect high and volatile soybean meal prices through early October.

Read more on Wisner projections.