Reduced supplies in the globe's largest grower helped push up corn futures on Wednesday, according to Bloomberg.
Inventories in the U.S. likely slid 38 percent during the three-month period to amount to 4.995 billion bushels by March 1, according to the average of estimates issued by analysts and assembled by the news source. That represents the biggest drop since 1975 as the supplies dropped at the most rapid pace in nearly 48 months.
"Corn supplies are going to be tighter than we have ever seen," merchandising director Kent Jessen with Heartland Cooperative in Iowa told Bloomberg on Wednesday. "Some people are going to run out of corn this summer. Ethanol processors are the best bid for corn, and that is drawing supplies away from exporters and livestock producers."
At 1:13 p.m. on Wednesday, corn futures rose 0.86 percent, a 0.0575 increase to $7.365 per bushel.
Reuters reports this year's first shipment of corn from Argentina to the U.S. is en route and more shipments will follow. Those orders mark an upward drive from the Latin American nation to the globe's top grower of the grain.
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