Corn to trade at a premium to wheat

We expect both corn and wheat prices to decline over the next two years due to a combination of ample supply, increasing competition between key grains exporting regions and a disappointing global economic recovery. Traditionally, corn has traded at a discount to wheat, because of its lower value both as food and animal feed. However, contrary to the consensus view, we believe that the relatively abundant global supply of wheat will lead to corn being traded at a small premium in future.