Lower US corn acreage to boost prices to US$5

An estimated lower US corn planting this spring could boost prices to US$5 per bushel, grain analysts said.

US corn plants is seen to reach 83-85 million acres, down from 86 million acres in 2008.

Soy planting could reach a record 80 million acres, up from 75.7 million planted a year ago, as higher corn planting costs deterred farmers from planting more.

CBOT corn prices will trade in the US$3.50 to US$5 per bushel range this season, president of Chicago consultancy AgResource Dan Basse estimated.

However, Jim Borel who oversees Pioneer Hi-Bred, said the pace of US corn seed sales has been ahead of the previous season for the past few months, thus US corn acres will be flat or up slightly.