Corn trades ‘most bullish in 7 weeks’

<p>Corn is enjoying a seven-week bull-run thanks to forecasts of diminishing stockpiles.</p>

Corn trades are at their most bullish in nearly two months, as predictions for the smallest stockpiles relative to demand since 1974 instigated the longest rally in a year.

Furthermore, the price of the cereal has advanced as Goldman Sachs predicted near-record values for the agricultural commodity, Bloomberg reports.

According to the US Department of Agriculture, global consumption of corn will overtake output for the second time in three years after drought spreading across Europe and the US farming belt dried out crops.

The government office also noted that world stockpiles will drop by 12 per cent to a six-year nadir of 115.9 million tonnes by October 2013, while inventories in the US slipped by 17 per cent from a year earlier to eight billion bushels on December 1st.

At 15:30 GMT, corn futures on the Euronext LIFFE Futures index rose by 0.3 per cent to €241.50 per tonne.

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