Published: Wednesday, 11 Jul 2012 | 9:40 AM ET
By: Reuters
A scorching drought across the Midwest will slash corn yields by much more than most analysts had expected, the government said in a report that reignited a record rally in grain prices.
Indiana, U.S.
Field corn plants with wilted and dying leaves stand in a dry field in Idaville, Indiana, U.S.
The U.S. Department of Agriculture said the crop will average just 146.0 bushels an acre, down 20 bushels from its June estimate.
As a result, the agency reduced its forecast for ending stocks by 37 percent from last month, partly offset by lower exports and less ethanol usage.
The surprisingly deep cut to the yield outlook shocked traders, who had expected the USDA to take a more conservative approach to adjusting its outlook. The reduction in ending stocks was deeper than the forecast for a 32 percent cut.
Corn on the Chicago Board of Trade soared after the release of the report, with the December contract surging 23 cents to $7.40-1/2 per bushel, nearly touching the contract high reached two days ago. Prices have risen 34 percent in the past four weeks.
The 12 percent cut in the yield forecast was the largest in memory, said the chairman of USDA's World Agriculture Outlook Board. Wheat and soybean stocks were also below expectations, with soybean
http://www.cnbc.com/id/48146684
This big alert area was centered in Kansas for the last month. Now they moved the bake to callie.
http://www.haarpstatus.com/status.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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