Surging demand sends corn futures near 30-month high

Corn futures hovered near 30-month highs in trading on Friday and are headed for a second consecutive weekly advance, fueled by burgeoning global demand amid dwindling stockpiles.Corn futures hovered near 30-month highs in trading on Friday and are headed for a second consecutive weekly advance, fueled by burgeoning global demand amid dwindling stockpiles.

The U.S. Department of Agriculture announced February 9 that global corn stockpiles are forecast to decline by 16 percent to 122.5 million metric tons through August; the USDA also said that output will drop in Argentina, one of the world's 10 biggest producers of the grain. In the week ended February 3, U.S. exporters sold 1.1 million tons of corn, which was up 51 percent from the prior four-week average.The U.S. Department of Agriculture announced February 9 that global corn stockpiles are forecast to decline by 16 percent to 122.5 million metric tons through August; the USDA also said that output will drop in Argentina, one of the world's 10 biggest producers of the grain. In the week ended February 3, U.S. exporters sold 1.1 million tons of corn, which was up 51 percent from the prior four-week average.

Jonathan Bouchet, an analyst at OTCex Group, contends inclement weather has hurt corn crops around the world. "USDA corn inventories and Argentina's latest output forecast were constantly cut on bad weather conditions," he wrote in a report. "The market remains extremely tight."Jonathan Bouchet, an analyst at OTCex Group, contends inclement weather has hurt corn crops around the world. "USDA corn inventories and Argentina's latest output forecast were constantly cut on bad weather conditions," he wrote in a report. "The market remains extremely tight."

Friday on the Chicago Board of Trade, corn futures for May delivery climbed 0.5 percent, or 3.5 cents, to trade at $7.130 per bushel; corn futures are up 4.7 percent this week and yesterday touched $7.15 per bushel, the highest level for a most-active contract since July 2008.  Friday on the Chicago Board of Trade, corn futures for May delivery climbed 0.5 percent, or 3.5 cents, to trade at $7.130 per bushel; corn futures are up 4.7 percent this week and yesterday touched $7.15 per bushel, the highest level for a most-active contract since July 2008.