With the drop of corn stock, farmers in the Northeast have an increasing intention of holding corn from sale to wait for higher prices. When corn market supply grows extremely tight around early July, traders have to raise their procurement price.
Subject to soaring fertilizer price, the returns from corn production have dropped by a big margin, dampening farmers’ initiatives in the crop, likely to affect corn production in 2009. Therefore, BOABC believes that the government may issue policies conducive to higher corn prices.
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