Reserves of corn in the United States have hit their lowest level in more than 15 years, reflecting tighter supplies that will lead to higher food prices in 2011. Increasing demand for corn from the ethanol industry is a major reason for the decline, according to federal officials.
The Department of Agriculture reported Wednesday that the ethanol industry’s projected orders this year rose 8.4 percent, to 13.01 billion bushels, after record-high production in December and January.
That means the United States will have about 675 million bushels of corn left at the end of the year. That is about 5 percent of all corn that will be consumed, the lowest surplus level since 1996.
The report, which measures global supply and demand for grains, oilseeds and other crops, said its projections for wheat and soybean stocks remained unchanged at historical low levels for reserves.
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