If a summer drought fails to happen, corn values could fall into the $3.20 range, while soybeans could drop as much as $1.50, predicts Rich Nelson, Allendale.

For now, Allendale is forecasting a national average corn yield of 165 bu. per acre, Nelson tells “AgDay” host Clinton Griffiths on the Agribusiness Update segment for Thursday, May 12, 2016. Values for both crops are likely to fall heading into June as the markets correct after overcompensating for the lower-than-expected South American crop, he says.

“I think we’re going to have a good price decline, maybe 40 cents to 80 cents here as far as soybeans,” Nelson says. “[We’ll] get that corn knocked down about 30 cents to 40 cents going into late May and June.”

So far, the national corn planting pace has been “aggressive” despite problems in Nebraska and portions of South Dakota, he says. Nelson anticipates a good summer price rally, though it “probably is not going to be one which lasts and gives us an actual yield problem again.”

Click the play button below to watch the complete "AgDay" interview with Nelson.

Want more video news? Watch it on AgDay.