Corn soars as US inventory forecasts drop
Corn surged above $7 a bushel, the highest since the peak of the 2007-08 food crisis, after the US government said inventories of the staple would this year fall to match their lowest level on record....
The predictions surprised traders, sending benchmark corn futures up 4 per cent to $7¾ a bushel, the highest since July 2008. Analysts forecast further price increases. “We’re going to continue to work higher and try to find a price that throttles back usage,” said Richard Feltes, grains analyst at RJ O’Brien, speaking on the sidelines of a conference held by the Commodity Markets Council, an industry body....MORE
Hussein Allidina, head of commodities research at Morgan Stanley, said he expected corn to hit $8 a bushel – beating its record price touched in 2008 of $7.65 a bushel. “Demand needs to be rationed in this supply constrained environment.”