Corn futures prices could dip later this year, only to rebound and surge above $8.50 in 2013 as supplies remain tight until next year's harvest, Macquarie Research says. Prices must stay high to choke off demand, firm says. "We expect US exports to drop dramatically and feed demand to weaken, but it will be challegning to reduce ethanol demand," Macquarie adds. Projects 4Q corn price of $7.50/bushel, but climbing after that to $8.75 by 3Q of 2013. Assuming a better crop next year, forecasts prices then tumbling to $5.00 by 4Q. CBOT Sep corn up 5 1/2c to $7.95 1/4. (ian.berry@dowjones.com; @enberry)

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(END) Dow Jones Newswires

September 06, 2012 09:32 ET (13:32 GMT)