U.S.D.A. reports that the U.S. planted 96 million acres of corn in 2012. At trend line yields that acreage would have produced a 15.8 – 16 billion bushel corn crop, which would have created an excess supply of corn. That excess would have lowered corn prices possibly to below $4.00 per bushel.
Now with topical heat for several weeks and drought conditions in some of the prime corn growing states, the 2012 corn crop is in doubt. Local October 2012 corn prices have risen from $4.60 to $6.17 quickly leaving us all wondering what is going to happen? Stand by for more updates.