Goldman Raises Price Forecasts for Corn, Soybeans, Wheat (CORN) (WEAT) (DBA)
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Goldman Sachs analysts raised their estimates on soft commodities including corn, soybean, and wheat futures prices due to damage caused by a recent heat wave in the U.S.
Last month corn spiked 14 percent as temperatures in the U.S. rose. It is unknown exactly how much damage the heat has caused, but there will undoubtedly be a reduction in corn yields from early estimates. As a result, Goldman is raising estimates on all the commodities listed above.
"Weather in the U.S. Midwest has remained hotter and drier than average in 2012, with current forecasts suggesting that these conditions will persist in the first half of July," Damien Courvalin, a Goldman Sachs analyst, said in the report.
"These conditions are detrimental to the development of the U.S. corn crop, with the impact likely exacerbated this year by early planting as the current hot and dry spell is occurring during the key yield determining pollination phase."
The following is a list of Goldman’s agricultural commodity estimates as of July 2nd, 2012:
3-MONTH WHEAT ESTIMATE TO $7.15/BUSHEL
3-MONTH SOY ESTIMATE $15.50/BUSHEL
3-MONTH CORN ESTIMATE TO $6.25/BUSHEL
The following ETFs own agricultural commodities (NYSE: CORN) (NYSE: WEAT) (NYSE: DBA).
Last month corn spiked 14 percent as temperatures in the U.S. rose. It is unknown exactly how much damage the heat has caused, but there will undoubtedly be a reduction in corn yields from early estimates. As a result, Goldman is raising estimates on all the commodities listed above.
"Weather in the U.S. Midwest has remained hotter and drier than average in 2012, with current forecasts suggesting that these conditions will persist in the first half of July," Damien Courvalin, a Goldman Sachs analyst, said in the report.
"These conditions are detrimental to the development of the U.S. corn crop, with the impact likely exacerbated this year by early planting as the current hot and dry spell is occurring during the key yield determining pollination phase."
The following is a list of Goldman’s agricultural commodity estimates as of July 2nd, 2012:
3-MONTH WHEAT ESTIMATE TO $7.15/BUSHEL
3-MONTH SOY ESTIMATE $15.50/BUSHEL
3-MONTH CORN ESTIMATE TO $6.25/BUSHEL
The following ETFs own agricultural commodities (NYSE: CORN) (NYSE: WEAT) (NYSE: DBA).
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