Futures Market News
Grain futures climb amidst rising demand, tightening supplies
Jan 12, 2011 05:04 PM
Prices for corn and soybeans soared to their highest value in 30 months as the U.S. government slashed inventory forecasts, which indicates a tighter supply of food to meet an increasing demand, Bloomberg reports.
As the globe's top exporter of grain, the U.S. saw its corn production slip nearly 5 percent in 2010. Pre-2011 harvest supply amounts are slated to be their lowest in 15 years.
"There's no room for error anymore," Dan Basse, the chief of Chicago commodity consultant AgResource, told Bloomberg. "With any weather issues, we're going to make new all-time highs in corn and soybeans, and to a lesser degree, wheat futures."
March-delivery corn futures shot up 24 cents, a 4 percent increase to $6.31 per bushel, the closing price on the Chicago Board of Trade. During the past year, the price of corn has shot up 61 percent as both soybeans and wheat have climbed more than 40 percent.
"The pressure is acute, in terms of planting fence row to fence row, and really getting the message out to farmers that they need to be planting up their front yards," he said.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Tax-Advantaged Forex Investing
Did you know that you can invest individual retirement funds (IRA’s) into forex?
Have you been following forex and have the time to devote to trading, but lack the free funds to invest? Tax advantaged forex investing may be for you.
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.






