Forecast of world corn yield in 2012-13 MY has dropped by 3 percent, amounting to about 838 million tons. In July International Grains Council predicted the yield to amount to 864 million tons.
The USA is experiencing the most severe drought for the last 50 years. Since the beginning of summer corn price has risen by 64 percent at Chicago Stock Exchange. On August 10 the contract rose to 8.49 dollars per bushel.
UNO has reported about a 6.2-percent price rise for commodities because of the price rise for grains.
The chart below reflects the current state of affairs in corn market: third down-wave may happen in short-term perspective, but for this second wave correction is to be over and low 805 is to be broken by a strong impulse. As an alternative, wave 1 may become correctional for the wave of higher level; vector will then be directed towards point 840.
