Tuesday 24 July 2012

U.S drought to pull global Corn production downwards

23 July, 2012
NEW YORK (Commodity Online):
With the prevailing drought weather conditions in U.S, the corn crop production in the country may drop by 20-25% and is likely to pull the global production prospects down.

Global corn production may see a drop of 60 million tons for the upcoming season.

Earlier, before the drought in U.S., United States Department of Agriculture (USDA) has pegged the global corn production at 905.2 million tons and consumption was forecast at 900.5 million tons.

With the drop in produce, the price of the commodity is likely to surge to new record heights in global market as the demand for the commodity from poultry and livestock industry is increasing.

The production in wheat and oilseeds also added demand to Corn in the global market.

In Inter-Continental Exchange (ICE), corn for September delivery traded at 810 4/8 cents per bushel and in India's National commodity and Derivatives Exchange (NCDEX), the commodity for August delivery traded at Rs 1576 per qtl on 23rd July at 14:45 IST.

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