$9 corn in next 6 months, firm says

11/14/2012 @ 9:44am

U.S. corn prices could hit $9 a bushel in the next six months as a result of the U.S. drought, which could potentially reduce corn supplies by as much as 2.1 billion bushels this crop year, Dan Basse, president of agricultural analyst AgResource, said Wednesday.

Mr. Basse told Dow Jones Newswires on the sidelines of the global grains conference in Geneva that the European Union's demand for corn imports could be as much as 12 million metric tons this agricultural crop year.

"The world has no feed wheat," Mr. Basse, a prominent agricultural commodities analyst, said.

U.S. wheat export prices could surpass the $400/ton threshold by the end of the first quarter of 2013, fob basis, as the global market battles tighter supplies of the grain as a result of limited exports from exporting nations.

Exporters in some countries, including Russia and Ukraine, oversold available grain stocks this year, Mr. Basse told the conference in Geneva earlier Wednesday. "As a result of restricted FSU [Former Soviet Union] trade, North America must supply world grain importers in the first half of 2013 and Latin America afterwards," he said.

By Neena Rai at
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(END) Dow Jones Newswires
November 14, 2012 09:54 ET (14:54 GMT)
DJ US Corn Prices May Hit $9/Bushel in Next 6 Months - AgResource->copyright

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