Credit Suisse Sees Corn Poised to Drop on Enlarged Supply

Agricultural , Food May 31, 2012 No Comments

CornCorn may fall to $5.50 a bushel in three months and $5 in 12 months, Credit Suisse analysts led by Tobias Merath said today in an e-mailed report. Farmers in Europe have replanted damaged winter-wheat fields with corn, and yields in the U.S. may increase because this year’s rapid planting pace will allow for an earlier harvest, the bank said.

Corn prices are set for a “sharp drop” because of prospects for rising world supplies in the next year, Credit Suisse said.

“Prices would need to fall below $5 to no longer look expensive,” Credit Suisse said. “We think there is a fair likelihood that the market will settle around these levels in one year’s time.”

July-delivery corn traded at $5.5675 a bushel on the Chicago Board of Trade by 9:11 a.m. local time today.

via Credit Suisse Sees Corn Poised to Drop on Enlarged Supply – Bloomberg.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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