Corn Advances as QE3 Boosts Commodities, U.S. Crops Shrink

Corn posted the biggest gain in two weeks after the Federal Reserve announced a third round of stimulus measures to bolster the U.S. economy, improving prospects for grain demand as a drought erodes output.

Global equities and commodities jumped after the Fed said yesterday it will expand holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month. U.S. corn production in 2012 will slump 13 percent to a six-year low, after the worst drought in almost six decades hurt crops, the government said on Sept. 12.