September 5, 2007

US corn prices forecast down to US$3.20/bushel by end-2007
 

US corn prices are likely to fall to about US$3.20/bushel by the end of this year from about US$3.65/bushel now as the US prepares to harvest a record corn crop, Vic Miller, former chairman of the US Grains Council, said Wednesday (Sep 5).

"Prices are going to moderate as the year progresses, and it seems likely that corn stocks by the end of this year may stand at 1.5 billion bushels, up from 700,000 bushels at the beginning of the year," he said.

In the longer term, the ability to recover more ethanol from corn, and the increasing use of cellulosic feedstock such as woodchips, may keep a lid on demand, Miller commented.

Reduced demand for corn to make ethanol will also keep corn prices moderate, he added.