Tight domestic and foreign supplies of corn have boosted prices since mid-2010, while in 2011 US corn crop was hobbled by floods, a mid-pollination heatwave in July and other calamities that included wind and fires.
 
With the US being the world’s largest corn exporter, accounting for 54% of global exports, these disasters have lowered supply levels of corn in the US. This morning, the US Department of Agriculture’s final 2011 crop production report, along with forecasts for domestic and foreign demand, expects to tell farmers and traders that the total US surplus for corn will be reduced from the estimate of 848 million bushels given in November to 753 million bushels today. Expectations for a decreasing supply level have pushed up corn prices by 1% ahead of the report.
 
However, with Japan the world’s largest corn importer, doubling corn purchases from Europe in the past two months as weak currencies boost appeal, reduced exports from the US may stem Chicago futures from pressing higher. This morning, corn futures for March delivery were 1% up at $6.58 a bushel.