Corn prices spike as South American drought reduces supply

April 9, 2012 |

In Illinois, Chicago Board of Trade corn prices have risen sharply after Reuters conducted a poll of analysts which indicated corn stocks will drop to a 16-year low. The drought in South America has reduced supplies and will result in an increased demand for feed and ethanol. The USDA’s forecast in March of nearly 800 million bushels overestimated yields by up to 80 million bushels, according to this poll; soybean production is also expected to be less than predicted.

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Category: Fuels

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