Goldman Sachs commodities analyst Damien Courvalin left his crop price forecasts unchanged despite today’s crazy-low corn output report from the USDA.”Overall, the USDA’s US and global production, demand and inventory forecasts were broadly in line with our expectations and as a result support our crop outlook. We expect soybean prices to outperform to ration resilient export demand in the face of critically low US supplies, corn prices to rally to secure sufficient ethanol demand destruction and wheat prices to underperform corn prices on relatively higher supplies.”
Couralin projects corn to trade at $9 for the next three months, then drop down to $8.25/bu for the rest of the year 2012 and falling to $7.50/bu in 2013.
He added he expects ethanol the government will curttail ethanol demand.
Earlier today, prices surged as high as $8.347 before settling lower for the day.