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US corn supplies 'to prove tightest for 15 years'
07.07.2010 10:57 "Agro Perspectiva" (Kyiv) —
Americas corn supplies are to prove even tighter than in the run up to the price spike two years ago, after official statisticians stunned markets with lowball sowings and stocks estimates.
Rabobank, revising up forecasts for prices of both corn and wheat, estimated US corn inventories would fall by more than 13% to 1.23bn bushels the 201011 crop year, following last weeks surprise US Department of Agriculture figures.
The USDA cut its forecast for American corn sowings, adding that stocks left over from the last harvest were weaker than analysts had expected.
On Rabobank estimates, the fall in corn stocks will leaves them at 9.1% of consumption the lowest ratio for 15 years, and indeed below the 11% figure in four years ago which helped propel farm commodity prices higher.
The stocks-to-use ratio is a key measure of market tightness, which in turn has a large impact on the prices buyers need to pay to secure supplies.
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