SAN FRANCISCO (MarketWatch) — Corn and other grains futures shot up Friday after a U.S. Department of Agriculture report pointed to the tightest supply and demand balance for corn in 14 years.
The Agriculture Department on Friday forecast a 2010-11 corn crop 3.8% smaller than government expectations just a month ago, as a hot Midwest summer preceded by floods in June takes its toll. Corn pops
The Agriculture Department said it now expects corn production to reach 12.66 billion bushels, from 13.16 billion forecast in September. September’s forecast itself had been a downgrade from August.
Corn for December delivery, jumped 30 cents, or 6%, to settle at $5.28 a bushel on the Chicago Board of Trade, the highest since late September 2008.
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