Record Corn Harvest Could Sink Food Prices
Agriculture officials predict a bumper crop this year
By Newser Editors and Wire Services
Posted May 10, 2012 3:40 PM CDT
Andy Hall plants corn Thursday near Bondurant, Iowa.   (Charlie Neibergall)

(Newser) – Consumers could see some relief from higher food prices by late fall, if the latest government crop forecast holds up. The US Agriculture Department predicted today that corn production will total 14.8 billion bushels, with a record yield of 166 bushels per acre. That compares with 12.4 billion bushels a year ago.

A hot, dry summer could decrease those numbers, but if the prediction proves true, corn prices will fall and that likely will mean lower supermarket prices for products such as cereal and soft drinks sweetened with corn syrup. Beef and pork prices could fall, too, because producers would pay less to feed their animals. "This would set the trend for six months from now for prices to be cheaper," says an analyst with Northstar Commodity.

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May 11, 2012 2:21 PM CDT
Record production and they still won't stop the subsidies.
May 10, 2012 10:41 PM CDT
Corn prices are pretty much established by the futures market. The reason corn is growing each year in terms of acres being farmed is because the price of corn is skyrocketing with a hungry market including the gasoline additive that was not a factor only a few years ago. Yep, when our energy began putting corn in gas tanks to compete with the commodities market, corn is the product of choice on MANY southern farms that only grew cotton for 100 years. How do I know that? Well, newser folks I AM A FARMER. My previous farming experience was with Cattle and a very dear customer to many corn growers across our nation. I fed over 3800 cow / calves and 3000 feeder stock at one time. I can assure you I know the corn market as good as any on this board. That said, the acres of corn is again increased this year versus last year with many soybean and cotton plantations now being dedicated to corn in Arkansas, Louisiana, Mississippi that never grew corn before. The price WILL NOT erode as forecasted simply because the corn futures are already cast and the corn production is already sold. Newser has no clue to that they have written and even if it were true, the price of gowing corn is a very high cost considering the cost of fuel and fertilizer the newser journalist has not even considered. Mark it down where you heard it....The PRICE OF CORN will STAY AS HIGH AS IT IS NOW! AND, I FORECAST A 10% INCREASE at minimum. We live in perilous and inflationary times folks in not only corn but everything..
May 10, 2012 9:56 PM CDT
It'll never happen, lower cost will not translate to lower prices, but to higher profits instead.