Not only oil but also corn heads skyward

The moving averages, volatility and localization all point to a clear trend, that the price of corn is going to continue rising.

Wednesday, June 11, 2008

Commodities specialist Diego Joachin, writing in the Central American newsletter The Black Box, notes that so far in 2008 corn prices have risen by 45 per cent. And, he adds, this is a logical trend.
Based on fundamentals, the upward trend is supported by poor germination rates in the United States.
Seeding time in the U.S., the world's largest producer, is in April and May, he says. At the end of May 2007, 98 per cent of the plants had sprouted, but in May 2008 only 76 per cent had done so. As well, this week there was flooding in the corn-growing region of the U.S., which will further reduce harvests between September and November.
Added to this is the fact that the use of corn to make ethanol has increased global demand.

More on this topic

Projections for Commodity Prices

July 2015

The World Bank has forecast a reduction in the international price of beef and chicken, cocoa, arabica and robusta coffee, and bananas, and increases in the price of corn.

From a statement issued by the World Bank:

WASHINGTON, July 22, 2015 –The World Bank is nudging up its 2015 forecast for crude oil prices from $53 in April to $57 per barrel after oil prices rose 17 percent in the Apr-Jun quarter, according to the Bank’s latest Commodity Markets Outlook, a quarterly update on the state of the international commodity markets.

Global Abundance of Grains

September 2014

An overproduction of corn, wheat and rice in China and a record crop which is expected this year in the United States will continue to push international prices down.

While drought in Central America ravages crops of basic grains such as corn, it is estimated that this year China will have a reserve of 150 million tons of grain, "...

Corn in El Salvador: Production and Import

April 2013

Between 2011 and 2012 El Salvador spent $160 million on the purchase of white maize, despite having the best performance per hectare of grain in the region.  

Even though in the last nine years El Salvador has recorded the highest average agricultural yield, data provided by the Economic Integration System (SIECA) reveals that in 2012, the country imported 83,231 tonnes of white maize.

The Price of Commodities

July 2008

These were on the rise until July when they started to fall.

There was a general fall in the price of commodities in July; corn (-30%), Oil (-19%), Natural Gas (-47%), Coffee (-11%), and so forth (percentage change for June 26 to July 29)

Explanations for this change range from subliminal messages from the Commodity Futures Trading Commission (CFTC) to signs that confirm a recession.

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