| Something’s Rising Besides Oil |
| Monday, 17 January 2011 18:22 | |||
 The U.S., January 2011 — The price of corn and soybeans jumped this past week on the Chicago Board of Trade. The reason: Lower harvest figures and tighter supplies.
Corn went north 30 cents per bushel before closing at $6.31, up 24 cents per bushel for March delivery. Soybeans rose to $14.15, up 58 cents per bushel, after jumping 66 cents in early trading. A U.S. Department of Agriculture (USDA) report indicated available grain stocks at harvest's end stood at 1.9 billion bushels, down from 2.2 billion bushels in 2009. Farmers in Iowa harvested fewer acres of corn and with lower yields in 2010, but the state retained its ranking as the nation's top corn producer. The state's corn farmers produced 2.2 billion acres, down from 2.4 billion acres in 2009. The average corn yield slipped primarily due to record rainfalls in July, which damaged the crop throughout central Iowa, and it was too late for replanting. Iowa also retained its position as the nation's top soybean producer. Farmers produced 496.2 million acres of soybeans, up from 486 million acres in 2009. The average yield was unchanged at 51 bushels per acre. Nationally, corn production dropped to 12.4 billion bushels in 2010 from 13.1 billion bushels in 2009. Soybean production slipped to 3.33 billion bushels from 3.36 billion bushels in 2009. Consumers can expect higher prices on the way, due to higher export demand and rationing to satisfy demand. SOURCE: Soyatech; USDA
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