The closing prices of futures on corn were near 2008 highs amid concerns over a decrease in supplies. Earlier last week the US Agriculture Department announced that the corn reserves dropped by 15% in the 4th quarter. By the end of CBOT trades May futures on corn closed with a 6.2% gain (7.36 US dollars per bushel). Earlier during the session futures reached an intraday limit of 45 cent for a bushel (7.38 ¼ US dollars per bushel). Nevertheless, on Monday the intraday limit is seen to be reduced down to 30 cent.
However, soaring corn prices failed to support wheat and soybean markets pressed by profit fixing. Earlier on Thursday the US Agriculture Department released a report in which the government forecasts farmers to seed corn on over 5% larger area this year amid worldwide prices for this grain. Additionally, the US Agriculture Department informed that as of March 1 the corn reserves constituted 6.52 bln. bushels which is 15% less than it was the last year. It proved the opinion about the current prices capable of restraining demand. That is why many market participants expect further futures growth attempting to withhold demand so that to prevent a crisis in supply. Besides, the US government is expected to degrade the forecast on the grain reserves for the current year. Goldman Sachs analysts told that corn prices may well increase up to 8.60 US dollars per bushel within 3 months to come.
