USDA says corn supplies fall, driving up prices

By The Associated Press

The U.S. Department of Agriculture says corn supplies are down 8 percent from a year earlier, increasing concerns that corn supplies will remain tight and prices high in the near term.

The price of corn surged about 6.6 percent on Friday after the report was released. High crop prices have been a thorn in the side of consumers and governments for the past two years. Corn is used in everything from animal feed to syrup for soda.

The USDA said corn supplies as of March 1 totaled 6.01 billion bushels, about half of which is stored on farms.

The report and the possible impact on food prices overshadowed another report by the USDA released Friday, which projects that corn growers would plant the largest crop since 1937.