Corn Ranked No. 1 Commodity by Morgan Stanley

Morgan Stanley today ranked corn at the top of their commodity bets list. As part of their recommendations for investors, their report entitled The path forward for corn: higher placed corn ahead of other commodities such as aluminium, copper and gold. "Tight U.S. supply will require continued demand rationing to keep the stocks-to-use ratio above 5%," the bank said. "Prices need to continue moving higher to accomplish this rationing." In its report, the bank has issued forecasts of corn futures to average $7.25 a bushel in the next year, an estimate higher than the USDA’s recent forecast due to the number of acres that will make it to harvest. "All told, this increase in production could allow for an incremental 157.5m bushels in Latin American exports, partially offsetting the needed rationing in U.S. exports. However, U.S. prices need to move higher to increase the attractiveness of exports from other origins," said Morgan Stanley in their report.