Drop in supply pushes up corn prices

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Associated Press

Posted on January 11, 2013 at 4:01 PM

Updated Friday, Jan 11 at 5:01 PM

Corn prices are climbing after a government report showed that farmers harvested less corn last year than anticipated, largely the result of a long-running drought.

The U.S. Department of Agriculture released its final 2012 crop report on Friday. It revealed that farmers produced a harvest of 10.78 billion bushels of corn last year, 27 percent less than the agency's first estimate. The country's stockpile of corn, used as food for cattle and other farm animals, dropped to 8.03 billion bushels as of Dec. 1.

Corn for March delivery rose 1.4 percent, or 10 cents, to settle at $7.0875 a bushel. Corn ended the week up 4 percent.

Concerns about the drought also helped push up wheat prices. Wheat for March delivery increased 1.4 percent, or 10.25 cents, to $7.5475.

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