The worst drought in 50-plus years will not be as damaging to corn crops as analysts had forecast, according to the U.S. government.
Bloomberg reports the U.S. Department of Agriculture indicated earlier this week that worldwide demand for the grain is projected to wane 0.9 percent during the 2012-2013 marketing year, which would represent the first drop since 1995. This year's collection of corn will be the smallest in six years.
At 10:54 a.m. on Friday, corn futures gained 1.32 percent, a 0.1025 cent lift to $7.84 per bushel.
"Demand is at risk," commodity strategy head Ole Hansen with Saxo Bank A/S in Copenhagen told the news source. "With supply now more or less known, the driver in the month ahead will be the demand response to the high prices."
Farm Futures reports August saw Brazil export 2.7 million tons of the grain, according to the South American nation's Ministry of Agriculture. That figure represents an 81 percent increase as compared to the same month last year. This past July's increase of corn exports, as compared to the same month last year, amounted to an increase of 431 percent, the publication states.