Summer heat could fire up corn prices despite record stocks

Chicago

GLOBAL corn stocks may be at record highs but rising demand is eating into the strength of the safety net, boosting the chances that any damage to the US crop from a hot, dry summer could trigger further gains in prices.

The global stocks-to-use ratio - which shows how long the world would manage on just what is in storage - is heading for a five-year low, according to the US Department of Agriculture (USDA). It is likely to be 16 per cent at the end of this crop year on Aug 31 - enough to cover about two months of demand.