Future Corn Prices Prediction 2012

Corn prices predicted 2012 is not separated from the price in 2011, back to the mid-2011 that the price of corn surged after the government lowered its estimate for this summer's crop and predicted global inventories will remain tight in 2012.

Corn settled up 2.8 percent Thursday at $7.855 a bushel.

The U.S. Department of Agriculture predictedU.S.corn stockpiles will total 695 million bushels in 2012. The total fell 205 million bushels from its previous estimate after heavy rains delayed spring planting in the easternCorn Beltand Northern Plains.

The estimate is important because theU.S.is the world's No. 1 corn exporter. Corn stockpiles are already short, and analysts have said for months that theU.S.needs to produce as much corn as possible this summer to offset tight supplies as demand grows stronger from other nations, ethanol producers and livestock owners.

The agency forecast global corn supplies at 111.9 million tons next year, which will be the lowest inventory since 2006-2007 if the prediction holds through the growing season.

China's production was expected to increase, but the department said that will be offset by higher consumption, leaving inventory at 51 million tons in 2012, just below the previous two years.

If actual costs in 2012 equal projected costs, the $162 per acre costs will be the second highest on record for centralIllinoisfarms with high-productivity farmland (see graph below). Only the 2008 cost of $185 per acre exceeds the 2012 projected costs. The actual fertilizer cost of $124 in 2010 and the projected of $150 per acre for 2011 are below the projected 2012 costs.

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