January 10, 2012

Chad Hart, Iowa State University assistant professor of economics, said that the demand from US' ethanol bio diesel livestock sector will help keep the prices for corn and soy high.

On Inter Continental Exchange (ICE) the soy for March delivery traded at US$11.49 per bushels and corn US$6.68 per bushels on January 9 at 16:02 IST. Meanwhile the cost of production for corn is expected around US$4.41 per bushel and US$10.70 per bushel for soy. With future prices exceeding projected costs US farmers should have a profitable 2012. While the wheat is also expected to gain on high corn price as the people have started including in the feed. The demand for the protein industry like poultry is slightly weak but is expected to gain in future. The bio diesel ethanol industry is one of the fastest growing industries and it is driving the process of corn and soy high.

European financial crisis drought in South America supply and demand and the unpredictability of weather is also threatening the crop prospects but the farmers and analysts are positive about the crop prospects for 2012.