July 16, 2010
Goldman Sachs ups US corn price forecast
US banking giant Goldman Sachs on Thursday (July 15) raised its forecast for corn prices for the next 12 months on rising demand from the ethanol market and potentially lower US corn yields.
"We expect further tightening of the corn balances on our expectation for strong demand growth from ethanol as well as our expectation that US yields will come in below recent trend levels," Goldman Sachs said in a research report published Thursday (July 15).
"Stronger-than-expected corn demand, especially for ethanol, reflected in both the USDA's June and July World Agricultural Supply and Demand Estimates (WASDE), suggests that this tightening has occurred sooner and to a greater extent than we had previously expected," the report added.
For the next three months, Goldman Sachs said it expects corn prices to rise to 415 cents/bushel and further to 450 cents/bushel in the next six to 12 months.
September CBOT corn futures closed at 384.25 cents/bushel on Wednesday (July 14).
