A sharp reduction in supplies of corn prompted the grain's futures to achieve their biggest jump in 14 days, according to Bloomberg.
Corn futures advanced after a report issued by the U.S. Department of Agriculture indicated global supplies will fall more than forecast since production severely fell as a consequence of the worst drought in the U.S. in more than 50 years this past summer. The U.S. is the world's biggest grower and exporter of the grain. October 1 inventories are projected to be 117.27 million metric tons, a reduction from 123.95 million tons predicted last month.
"This report signals there is absolutely no supply cushion," buyer-relations manager Dale Schultz with AgWest Commodities in Nebraska told the news source. "We have to raise prices and reduce demand immediately to prevent a real shortage."
At 9:56 a.m. on Thursday, corn futures surged 3.5 percent, a 0.2575 cent lift to $7.625 per bushel.
Agriculture.com reports farmers in the U.S. are projected to grow increased amounts of soybeans this year, based on the U.S. Department of Agriculture's monthly report issued on Thursday.
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