April 12, 2012

Goldman maintains its corn, soy outlook

In response to the USDA's reduced estimate of South American soy and corn yield, investment bank Goldman Sachs said it was maintaining its outlook for higher old-crop corn and new-crop soy.

"We reiterate our constructive outlook for old-crop corn prices on our expectation that higher corn prices will be required to limit demand growth in the face of low US inventories, with our three-month price forecast at US$6.90/bushel," the bank said in a research note dated April 10.

Goldman reiterated its three-, six- and 12-month price forecasts for CBOT soy futures at US$14.30 per bushel.