UN Says Corn Falling for ‘Wrong Reasons’ as Morgan Stanley Predicts Gains



A plunge in corn prices may mislead growers that world stockpiles have returned to normal, spurring farmers to cut acreage and exacerbating a shortage of the grain used in foods, fuels and animal feed, the United Nations said.

“We’re seeing a downtrend in prices for the wrong reasons,” Abdolreza Abbassian, senior economist at the Food & Agriculture Organization, said in an interview. “The medium- term response would be a shortage, so prices will rise.”

Corn shed 18 percent from this year’s high in June to yesterday’s close as investors sold commodities from metals to farm products on concern that the global recovery was faltering. The decline helped to ease near-record food prices, curbing inflationary pressures as governments seek to boost growth.


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