Corn prices have spiked roughly 30 percent in the last month because of droughts and extreme heat conditions in the Midwest. Corn prices for December delivery rose another 3 percent on Tuesday to $6.56 a bushel.
The U.S. Department of Agriculture reported additional crop deterioration in its weekly crop progress report released Monday afternoon. Supply of corn in good to excellent condition dropped to 48 percent from 56 percent in one week according to a tally of the country's 18 corn-producing states.
This year was supposed to be a banner year for corn production. In its annual planting report released Friday, the USDA estimates that farmers will plant 96.4 million acres of corn this year -- the largest amount of corn planted in the past 75 years. But that bumper crop won't matter much if Mother Nature continues her wrath.
"If you get heat during the pollination phase, or the reproductive stage, of the corn market, and you could get irreversibleRead More »from Corn Prices Surge 30%: Why It Matters To Your Bottom Line