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CHICAGO (Reuters) - The price of gasoline, which soared to above $4 per gallon in July and hit motorists and industry hard, could retail at an average $1 per gallon next year, brokerage Alaron Trading Corp forecast on Thursday.

Alaron energy analyst Phil Flynn told a conference in Chicago he expected crude oil prices to range between $25 and $50 per barrel in 2009, with the short-term target being $35.

"We're not going to see commodities turn around overnight. We're entering a new era in commodities with more stable prices and we will not see the big spikes in prices we've seen in the past," Flynn said.

Crude oil plunged about $108 per barrel, or nearly 75 percent, from a record high $147 a barrel in July to below $40 on Thursday as global consumption continues to slow.

Alaron grains analyst Tim Hannagan gave a contrarian view for the grain market, saying he expected wheat, corn and soybean prices to move higher next year. That's in stark contrast to the past year's trend of grains almost mirroring the moves in crude oil and other commodities.

"We've divorced ourselves from the other commodities," Hannagan told Reuters.

Hannagan said corn prices in the spring of 2009 would range from $4.60 to $5.25 and he sees a summer high of $6 to $7 per bushel. Corn futures prices recently dropped below $4 per bushel.

He pegged soy prices next spring between $10 and $11 per bushel and a summer high of $12 to $13 compared with prices below $9 this week. Also, wheat prices from March-June will average between $7.50 and $8.75, up from roughly $5.60 per bushel on Thursday.

Prices for grain and soybeans have fallen over 50 percent since record highs were set earlier this year but strong global demand for protein will boost prices, he said.

Corn production is forecasted at 12.2 billion bushels this year, up 1% from last month but 7% below 2007, the U.S. Department of Agriculture reported Friday.

Based on conditions as of Oct. 1, yields are expected to average 154 bushels per acre, up 1.7 bushels from September and 2.9 bushels above last year, the USDA said. If realized, this will be the second highest yield on record, behind 2004, and production will be the second largest, behind last year...

Soybean production is forecast at 2.98 billion bushels, up 2% from the September forecast and up 11% from last year, the USDA reported. If realized, this will be the fourth largest production on record.
Based on Oct. 1 conditions, yields are expected to average 39.5 bushels per acre, down 0.5 bushel from last month and down 2.2 bushels from 2007