COWPOCALYPSE: Prepare For The Largest-Ever Drop In Livestock Herds
Rob Wile
BusinessInsider.com
Jul. 19, 2012
Morgan Stanley’s Hussein Allidina is out with his latest agricultural commodities update.
The news: We are in for a big burn on prices, as record heat and drought roasts corn and soybean crops into oblivion.
“We are raising our 2012/2013 corn and soy forecasts to account for tighter-than-expected balances. Our new price deck implies 3% and 4% upside to the corn and bean curves, respectively. While we expect that corn and soybean prices to average $7.85/bu and $16.00/bu, respectively, in the coming year, we expect that the inelastic nature of demand for these products, and the prospect of record tight inventories could send prices significantly higher for short periods of time in 2H12. Indeed, we anticipate periods of time in the coming months where corn trades in double-digits.”
The Rest…HERE
