April 6, 2011

CBOT corn futures might soar to US$8/bushel in three months

July corn futures on the CBOT could increase to US$8 a bushel due to robust demand for animal feed and ethanol amid tight supply, a senior industry executive said Tuesday (Apr 5).

Adverse weather conditions in US corn growing regions may also support prices, Colin O' Shea, Head of Commodities at Hermes Fund Managers Ltd., said.

July corn  futures on CBOT are currently trading around US$7.68 a bushel.

O'Shea said that crude-oil futures on the New Mercantile Exchange may rise to US$150 a barrel in the next three months if ongoing geopolitical tensions in the Middle East and North Africa escalate or if spare production capacity in Saudi Arabia is adversely affected.

Hermes Commodities manages over US$2 billion of assets for institutional investors.