"A bidding war is heating up among users of corn in the United States as livestock feeders and ethanol makers scramble to lock in supplies before extremely low stocks run dry by this summer.
And it could escalate even more with any delay in harvesting the crop in the flood-ravaged U.S. South, or if China steps into the market to buy the grain held over from last year's harvest, as persistently rumored.
Corn supplies are forecast to fall to their lowest level in 15 years this summer in the U.S., the world's top exporter of the grain. Those holding stocks, like commercial grain companies, could reap handsome profits ahead of the Midwest harvest in September.
But those who have sold corn they do not own, such as resellers, could face losses if they are unable to deliver."
Julie Ingwersen reports for Reuters May 27, 2011.
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