A complate 180degree turnaround in less than 48hrs from G.Sachs!!
By Claudia Assis SAN FRANCISCO (MarketWatch) -- Barclays and Goldman Sachs have increased their price forecast for grains futures to reflect the impact of the Midwest drought on yields and Wednesday's U.S. Department of Agriculture report. The drought "has markedly changed supply expectations over the course of recent weeks," Barclays said. The bank increased its 2012 average corn price forecast to $6.80 per bushel from $5.74 a bushel; its soybean forecast to $14.80 a bushel from $14.25 a bushel; and its wheat forecast to $7.40 a bushel from $6.35 a bushel. Goldman Sachs raised its three-to-six-month corn price forecast to $6.90 a bushel from $6.30 a bushel; its forecast for soybean futures prices to $16.25 a bushel from $15.50 a bushel; and wheat to $7.70 a bushel from $7.15 a bushel. The drought led the USDA to cut yield forecasts "aggressively", and, for corn, the risks to the price forecast is to the upside, Goldman said in a note.
