Corn prices surged, capping the biggest weekly rally since July, after the government said stockpiles in the U.S., the world’s largest grower and exporter, shrank more than analysts expected because of a drought-reduced harvest and rising demand for livestock feed.
Inventories on Dec. 1 were 8.03 billion bushels (204 million metric tons), 17 percent less than the 9.647 billion held a year earlier, the U.S. Department of Agriculture said Jan. 11 in a report. Analysts surveyed by Bloomberg expected a drop to 8.219 billion. Supplies held in farmer grain bins fell 26 percent from a year earlier to the smallest for that time of year since 1995. The USDA said meat and poultry output will be 1.4 percent larger than forecast in December.
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