Corn, cotton may outperform oil in 2007

Corn, cotton may outperform oil in 2007
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First Published: Mon, Feb 19 2007. 11 07 PM IST
Updated: Mon, Feb 19 2007. 11 07 PM IST
Agencies
Corn and cotton may outperform oil this year as demand from China and alternative fuels gain, Barclays Capital said on 19 February.
“Cotton has a very strong story, demand from China is increasing,” Paul Horsnell, head of commodities research at Barclays Capital, said in an interview at a press briefing in London today. Corn prices “will be supported by the ethanol story,” he said. Barclays Capital is the investment-banking arm of the UK third-largest lender.We feel more positive about agricultural commodities than we have done for awhile,” Horsnell said.
Corn futures surged almost 81 % on the Chicago Mercantile Exchange last year on increased demand for grain to make ethanol, an alternative fuel, and to feed livestock. Cotton climbed 3.7 % while oil prices were little changed after reaching a record in July.Oil prices in New York may average $66 a barrel this year, Horsnell forecast. Oil averaged $66.25 a barrel last year.
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First Published: Mon, Feb 19 2007. 11 07 PM IST
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