U.S. inventories of the grain prior to the next harvest will climb as high as 632 million bushels, which would mark the lowest since 1996, according to the U.S. Department of Agriculture. The agency also forecast that inventories of soybeans will drop to their lowest in about nine years.
"We have not slowed consumption for either corn or soybeans," president Jim Gerlach with A/C Trading Co. in Fowler, Indiana, told the news source on Monday. "The USDA report will keep prices high to ration tight supplies."
At 2 p.m. on Monday, corn futures rose 1.1 percent, a 0.0775-cent rise to $7.1125 per bushel. At 2:59 p.m., soybean futures rose 0.58 percent, a 0.085-cent rise to $13.795 per bushel.
MarketWatch reports Capital Economics forecast the price of corn futures to fall as much as 30 percent by the end of the year because supplies are rapidly falling. The worst drought in more than 50 years last summer prompted many grains to increase in value but grains have since dropped.
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