Alexandria Virginia, United States (June 17, 2008) (Reuters - Access All) Richard Gilmore, President and CEO of The GIC Group:
The worst flooding in the United States midwest in 15 years sent fresh shocks to global markets and consumers as corn prices hit record highs on devastating crop losses in the heart of of the world’s top grain exporter. The price of corn at the Chicago Board of Trade soared above $8 a bushel for the first time.
Agribusiness expert Richard Gilmore says corn prices were already high because of low supply and demand from ethanol producers. The flooding only makes it worse.
“There is a big loss in the emergence and growth of our corn. At least two million acres have been affected. The range I’ve seen is between two and four million acres. The last crop report took U.S. production figures down – they dropped 380 million bushels. That was actually before the most severe effects of the flood. So, we are talking about a potential of a loss of over 650 million bushels, if, and this is a big, big if, they can’t replant,” said Gilmore.
Gilmore said that certain hybrid varieties of corn have a gestation period of 90 days, so there may be some hope if affected areas dry quickly.
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