May 17, 2012

US corn prices dive for two straight days

By the end of the previous week, US corn prices took a plunge, falling US$0.1975/bushel on Thursday (May 10), followed by an additional drop of US$0.065 on Friday night.

The price lost US$0.39 in total last week and US$0.53 a bushel for the month of May to date.

Malcolm Bartholomaeus, of Callum Downs Commodity News, says it won't have a huge immediate effect on the price of other commodities, even the lagging wheat price.

"The move away from corn into using wheat for feeds is likely to stall and be reversed, and unless there is a real crunch in terms of global production, it's very difficult to see why wheat prices will rally much from where they currently are."