Futures Market News
Corn futures feel the heat and benefit from it
Jun 27, 2012 12:41 PM
Steep reductions of corn inventories in the U.S. are projected to hasten even more rapidly, according to Bloomberg.
The Midwest of the U.S., considered the heartland of the world's largest shipper of the grain, is set to endure a third-straight year of damages. The region now is enduring the worst rainless stretch in more than 10 years, which is harming what the U.S. Agriculture Department considers its biggest harvest ever.
"We have a potential disaster developing for the U.S. corn supply," agricultural commodities senior director Peter Meyer with PIRA Energy Group in New York told the news service. "This year may be the worst yet."
At 12:39 p.m. on Wednesday, corn futures climbed 2.88 percent, an 18 cent increase to $6.42 per bushel.
Since scraping their lowest value in 20 months on June 15, corn futures have gained 28 percent.
Reuters reports the grain touched its highest price in nine months on Wednesday amid the sun's vigorous rays during the crop's most important pollination period. Corn futures have achieved their strongest three-day bullish run in four years.
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