Corn climbs on tightening supplies

Corn futures continued to climb today, rising to a 30-month high as buyers gobbled up supplies from diminishing stockpiles.Corn futures continued to climb today, rising to a 30-month high as buyers gobbled up supplies from diminishing stockpiles.

The U.S. is the world's largest exporter of corn and according to the U.S. Department of Agriculture, domestic output fell by 4.9 percent last year; corn supplies are currently at their lowest levels in 15 years. Moreover, the USDA cut its global inventories forecast to 127 million metric tons, the lowest projected total since 2007.The U.S. is the world's largest exporter of corn and according to the U.S. Department of Agriculture, domestic output fell by 4.9 percent last year; corn supplies are currently at their lowest levels in 15 years. Moreover, the USDA cut its global inventories forecast to 127 million metric tons, the lowest projected total since 2007.

Greg Grow, director of agribusiness for Archer Financial Services Inc., affirmed that although corn prices are high, they are not at levels that would prompt a retraction: "Prices have not risen high enough to slow demand," he told Bloomberg. "The attitude among consumers is that you have to buy the breaks to accumulate tightening inventories."Greg Grow, director of agribusiness for Archer Financial Services Inc., affirmed that although corn prices are high, they are not at levels that would prompt a retraction: "Prices have not risen high enough to slow demand," he told Bloomberg. "The attitude among consumers is that you have to buy the breaks to accumulate tightening inventories."

Today on the Chicago Board of Trade, corn futures for March delivery increased 1.6 percent, or 10.75 cents, to trade at $6.5950 a bushel.Today on the Chicago Board of Trade, corn futures for March delivery increased 1.6 percent, or 10.75 cents, to trade at $6.5950 a bushel.

Corn is the biggest U.S. crop, totaling $48.6 billion in 2009. Corn is the biggest U.S. crop, totaling $48.6 billion in 2009.