Falling Crop Outlook Puts Corn Above $5

Posted by Brian Gould Mon, 20 Sep 2010 17:07:00 GMT

Corn prices climbed above $5 a bushel last Friday as reports of a disappointing U.S. crop proliferated, delivering an unexpected hit to already-tight global grain supplies. As harvest results trickle in field by field across the U.S. Midwest, many farmers are reporting that yields down from last year. This has repercussions in nations such as China, where grain supplies are closely monitored. China is the second-biggest consumer of corn after the U.S., and a potentially crop-damaging frost in its northeast agricultural region triggered Friday’s move above the $5 mark.

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