April 9, 2012

Global corn, soy prices up in H1 on tight supplies

On the back of tight supplies before easing in the second half with new crops flowing into the market, corn and soy prices may extend gains in the first half of this year, a senior economist at the United Nations' Food and Agriculture Organisation said.

"There is a scope for further increase in corn and soy prices in the first half of this year," Abdolreza Abbassian, who is also FAO's top grain analyst, told Reuters on Thursday (Apr 5).

Global corn stocks are far from comfortable levels at present and a considerable increase in output is needed to replenish them, Abbassian said.

Gains in soy and corn prices are likely to have a spill over effect on wheat prices, he added.