(Adds comments from O'Neil beginning of paragraph 11).
April 25 (Bloomberg) - corn can become more expensive than the wheat for the first time since 1984 that the demand for livestock feed and ethanol grows, increased spending for Tyson Foods Inc. and boosting sales to Syngenta AG.Future average a record $ 8 a bushel in the three months ending September 30, more than the $7.70 a bushel for wheat, said Abah Ofon, analyst of Standard Chartered Plc to Singapore farm products. Corn will be 11% more expensive that the wheat in three months, according to Goldman Sachs Group Inc. Chicago corn traded to $7.60, 2.1 per cent, at 3: 21 p.m. time. Singapore corn costs skyrocketing, an ingredient in livestock and poultry feedcan boost the price of food world to rebound to a folder, which prompted the central banks of Beijing in Brasilia to increase interest rates. While gains can raise costs for food animal Tyson, the largest processor of U.S. meat, they would benefit Syngenta, largest maker of agricultural chemical product the more, as farmers seek to protect their crops from pests and diseases. "It is only a limited amount of wheat you can switch to power at a given time,"according to Ofon."which correctly predicted in January that the wheat would be trail corn That will limit the ability to benefit from the high prices of corn wheat, he said. Wheat was 49% more expensive than corn on average in the past five years and the last recovery to $8.545.Wheat will increase to $7.75 a bushel in three months while the corn may advance to $8.60 a bushel, Goldman Sachs predicted in a report April 2.1 SyngentaTysonSales by Syngenta expanded 14 percent to 4.02 billion in the first quarter of a year more early as farmers in Europe and the United States, purchases of chemicals to protect crops against pests and diseases, John Ramsay, CFO of pointedit in a teleconference on April 15. "We are already seeing indications that the market development of crops of corn and soybeans in the United States will strongly this year", said Mr. Ramsay.Tyson and other meat processors have faced higher costs for animal feed as corn and soybean prices advanced to their highest level since 2008. " Flour of corn and soybeans represent 42 per cent of the costs of Tyson raising chickens, consisting of 34% of its turnover in 2010, according to the company.Corn may advance to $8 a bushel, said Luke Mathews, a strategist of merchandise at the Bank of the Commonwealth of Australia, while Alex Bos, an analyst of Macquarie Group Ltd., said term may climb as high as $10 per bushel if U.S. farmers planted less than budget expenses of the Government.Corn, EthanolGlobal stocks will fall for a third year at 111 million tonnes by 2011-2012, or about 13% of consumption, the International Grains Council, said on April 20. This would be the smallest ratio of inventory to consumption since 1974, according to data of the Ministry of Agriculture of United States .augmentant demand for corn in China, the world of the second - most great user, can force the nation at the end of the grain exports, and rely on overseas suppliers, Jay O'Neil, Advisor to the Board grain to the United States, said to Singapore today. "While we go in 2012, there are not more of China's exports and, most likely, imports,"O'Neil said at a Conference.China has been estimated by the USDA for shipping 100,000 tons in the 2010-2011 marketing campaign, down from 151 000 tonnes a year earlier. The exports of corn annual Asian plunged six times since the end of 2003 marketing year, when shipments were a record 15.2 million tonnes, according to USDA data.Estimation of PricesAn of food to 2 million tons of corn imports by China "is rational", as the production of the country struggles to keep pace with demand, John Baize, who heads political and international agricultural trade society John Baize and Associates, said at a Conference in the estimation of the Singapore.Baize for imports of maize from China compared with forecasts of USDA of 1.5 million tonnes.While the price of food in the Organization of the United Nations for Agriculture & food dropped by his record in March, crops are not enough to reconstruct global stocks to "safe levels" that increase demand for food, food for the cattle and increase in biofuels, said Concepcion Calpe, Economist at FAO, on April 7. about 7% of the U.S. harvest corn was planted April 17, down from 16% a year earlier, according to the USDA. At least one third of the crop must be planted by May 1 or yield potential can be reduced, said Greg Grow, Director of the agro-industrial sector for Archer Financial Services Inc. in Chicago.Expanding AcreageAcreage in the U.S., the largest producer and exporter, will expand 4.5 per cent to 92.178 million acres (37.3 million hectares) this year, the second since 1944, the USDA estimates.Use of corn ethanol production will jump 35 per cent to 5 billion bushels this season two years ago, the USDA said April 8. A by-product of the processing is dried grain with solubles Distillery, a competitor of feed wheat.Increase in supplies of so-called DDGS will provide poultry and livestock farmers with a less expensive alternative, discourage switching of wheat, according to Simon Clancy, Manager of export broker at FCStone Australia Pty.The last time the future of most active contract in Chicago corn closed at a premium of wheat was 18 juin1984According to data compiled by Bloomberg.-Editors: Matthew Oakley, Jarrett banks
To contact the reporter on this story: Luzi Ann Javier at Singapore to the ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
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