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.
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