Grain and cotton prices will likely continue to push higher, Goldman Sachs said in a note to investors and reported by Bloomberg. The firm predicts corn prices could reach $7.75 per bushel by summer, $17.50 for soybeans and $12.50 for wheat. They note new-crop contracts are lagging front-month contracts. Goldman Sachs analysts think new-crop corn and cotton will gain the most as they try to catch up to wheat prices.
The firm doubts U.S. farmers can offset Ukraine/Russia’s global supply shortages due to limited additional U.S. capacity and more potential production shortages from Ukraine.
