$4 corn by harvest? Maybe
Last year, as the drought raged across the nation’s fertile heartland, experts warned about the possibility of corn reaching $10 per bushel. A year later, one bank is forecasting a very different scenario to unfold by the 2013 harvest – a return to $4 corn.
AgriMoney reports that the bank Macquarie’s forecast reflects an “increasingly negative outlook” after the USDA shocked investors with its June 28 “Acreage” report. In the report, corn acreage was estimated at 97.4 million acres, 2.1 million more than originally anticipated by analysts.
"As it now looks more likely that we will have a large U.S. corn crop, the bearish outlook becomes more certain," said Macquarie analyst Chris Gadd.
The bank is forecasting Chicago corn prices to average $4.50 per bushel in the October to December quarter, and Gadd warned that values could fall.
"We are likely to test significantly below this ($4.50-a-bushel) level in the October-to-November period," he said.
- TekWear partners up on new crop monitoring technologies
- Harvest delays impact crop performance, study shows
- Hogs were the exception to the bullish rule Thursday
- Sugarcane aphids found in North Carolina
- Online registration open for Dec. 15-16 AGMasters conference
- Export data, equity gains boost crop futures Thursday morning
- How much corn can the ethanol industry use?
- Economist: Taxing P could reduce risk of algal blooms
- Commentary: Government wants farmers to quit farming
- Ag markets made a generally mixed showing Thursday night
- What is the relationship between maturity group, yield?
- Commentary: Ambulance-chaser lawyers take on Syngenta