After Argentina, the world's second-largest corn exporter, halted new orders for shipments, Chicago Board of Trade corn prices climbed over 3% to a 10-year high.
"The Argentine suspension has refocused attention on declining world supplies available for export and may increase demand for U.S. corn," says Gregg Hunt, a market analyst for Fox Investments Inc. in Chicago. "The market acts like end users don't have enough corn."
Ron Mortensen, president of Advantage Ag Strategies in Fort Dodge, Iowa, says the climb in corn prices may influence ethanol producers' standing plans to add capacity.
"The market's job is to rise high enough to stop plans to construct new ethanol plants," Mortensen says.
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