Corn Futures Increased to a 12-Year High Monday

Posted by Brian Gould Tue, 15 Jan 2008 16:58:00 GMT

Corn futures surged to a 12-year high Monday on expectations that world supplies will shrink rapidly amid growing demand for the grain to feed livestock and make alternative fuel.

Other commodities traded mostly higher, with gold and platinum touching record highs and crude oil also making gains.

Investors snapped up corn contracts for a second straight session after the U.S. Department of Agriculture released a bullish report Friday projecting a steep drop in U.S. corn ending stocks. The USDA lowered its ending stocks forecast for 2007-08 to 1.438 billion bushels, down sharply from 1.797 billion.