US futures prices and various underlying cash prices are likely to reflect a bearish change in fundamentals the rest of the 1996/97 crop year as well as into 1997/98 after two and a half years of bullish conditions. Futures are expected to remain range bound in the remaining months of 1996/97 with a drop likely to the mid 60 cent area by the fall of 1997. The US should see a small decline in 1997/98 planted area and a return to normal yields, but similar demand as in 1996/97 will keep stocks unchanged. World production and consumption are also expected to be offsetting factors which will maintain ending stocks at current levels into 1997/98. A continuation of current high stocks in the US and in the worldwill contribute to lower prices in 1997/98.