Hedge Funds Grow More Bullish on Corn as Surplus Eases
- U.S. reserves projected to drop for first time in five years
- Near-record ethanol production means more demand for grain
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The glut of corn that’s been plaguing Midwest growers is finally starting to ease, and hedge funds are betting that will help spark a rally for prices.
U.S. corn inventories are set to drop before the 2018 harvest as farmers curb plantings and demand stays robust, the Department of Agriculture said Friday. The decline would be the first since 2013 and signals that the four-year rout for prices could be over.