June 13, 2008

Corn Products International's shares downgraded due to high prices

Shares of Corn Products International were downgraded to market perform from outperform Thursday (June 12, 2008) by BMO Capital Markets.

BMO said that the recent high corn prices will limit the company's growth in North America and recovery in Asia.

Analyst Kenneth Zaslow said that Corn Products will likely need to buy corn at higher levels in 2009.

Zaslow explained that there has been a serious change to corn fundamentals over the last week as the recent flooding deteriorated yield and acreage prospects for corn.

BMO Capital cut its price target for Corn Products to US$48 from US$51.

Company shares closed at US$46.13 Wednesday (June 11, 2008).

Corn Products International manufactures food ingredients and industrial products from corn and other starch-based raw materials.