July 4, 2012

Global corn prices up on US dry weather

Due to the prevailing dry weather in major growing areas in the US, global corn prices increased despite International Grain Council's (IGC) high world corn production forecast.

According to IGC world corn production is expected to be around 917 million tonnes in 2012-13 up 5.7% from last year. Higher production in China and in India is also attributed for the rise in world corn output.

China is expected to produce around 195 million in 2012-13 higher by six million tonnes compared to last year and in India corn output is expected to be around 22 million tonnes, while US corn crop is forecast to drop by five million tonnes to 350 million tonnes.

The prevailing dry climate in US is likely to push down production further.

Corn for July delivery in Chicago Board of Trade (CBOT) traded up US$0.08 4/8 to US$7.01 per bushels and in India's National Commodity and Derivatives Exchange (NCDEX) the commodity traded up 0.78% to INR1,268 (US$23) per quintal on July 3.