Corn Breaks Out!
Posted on June 9th, 2011 by MoverMike
Corn broke out of a two-month consolidation under $7.80 and reached a new all-time high of $7.9150 (see three-month chart)
The Financial Times reported “the US Department of Agriculture said domestic stocks of the grain would decline to 695m bushels by the end of August 2012, even less than the critically low stocks projected before this year’s harvest begins in the world’s largest food crop exporter.”
The agency sharply raised forecasts of corn demand in China, where meat purchases are rising alongside incomes.
The forecast further raises fears of food inflation, pinching consumers and fueling concerns for central bankers.
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