Global corn stockpiles are set to sink to their lowest levels in more than 30 years, according to a published report.
Bloomberg reports that record global corn production for the fifth consecutive year will not be enough to satiate burgeoning demand for the food source. This year, industry analysts project that harvests will fail to meet demand for food, fuel and livestock feed, and will contribute to higher prices.
In the next marketing year, corn consumption will increase three percent, which represents the 16th consecutive annual gain. The U.S. Department of Agriculture estimates that corn stockpiles will plummet to 47 days of use, which represents the lowest such figure since 1974. Inclement weather around the globe - especially in the U.S., which is the world's biggest producer - has resulted in reduced harvests this year.
What's more, surging demand from so-called emerging economies like China and Brazil has squeezed farmers, UBS global head of commodities Jean Bourlot affirmed.
"There is a storm developing in agriculture," Bourlot said. "If we have the slightest disruption in any part of the world, the effect on the price will be considerable."
On the Chicago Board of Trade on Monday, corn futures for December delivery climbed 0.8 percent to settle at $6.60 per bushel. Analysts contend that surging demand could push futures as high as $9 per bushel over the next year.
Bloomberg reports that record global corn production for the fifth consecutive year will not be enough to satiate burgeoning demand for the food source. This year, industry analysts project that harvests will fail to meet demand for food, fuel and livestock feed, and will contribute to higher prices.
In the next marketing year, corn consumption will increase three percent, which represents the 16th consecutive annual gain. The U.S. Department of Agriculture estimates that corn stockpiles will plummet to 47 days of use, which represents the lowest such figure since 1974. Inclement weather around the globe - especially in the U.S., which is the world's biggest producer - has resulted in reduced harvests this year.
What's more, surging demand from so-called emerging economies like China and Brazil has squeezed farmers, UBS global head of commodities Jean Bourlot affirmed.
"There is a storm developing in agriculture," Bourlot said. "If we have the slightest disruption in any part of the world, the effect on the price will be considerable."
On the Chicago Board of Trade on Monday, corn futures for December delivery climbed 0.8 percent to settle at $6.60 per bushel. Analysts contend that surging demand could push futures as high as $9 per bushel over the next year.
Post A Comment:
0 comments so far,add yours