Current world grain and oil seed supply is expanding faster than demand this year, reaching a record of 501 million metric tonnes.
Dan Basse of Agresource company says in order to balance out, North America would need to cut production by about 20 million acres in five years, which would be hard to do without government help.
He doesn't think grain prices haven't bottomed out yet, but says cash grain markets could hit their lowest in late February or early April.
"Farmers don't like the low prices that are being offered and so because of that they are hoarding grain which may give us a rally into the December early January time frame but thereafter we start thinking about planting another crop in the northern hemisphere, the banker will pressure farmers to raise cash and that will allow sales of cash grain."
Basse says as grains and oil seed stocks continue to increase, profitability pressures will also continue for farmers on a global perspective.
In order to balance out supply and demand, North America would have to lose around 20 million acres in the next five years, which Basse says would be hard to do.