Corn futures are heading to record highs on reports of wider crop devastation, and as forecasts show continued hot, dry weather threatening even more of this year’s crop.
The latest U.S. Department of Agriculture data shows that just 31 percent of the corn crop is in good to excellent shape, a sharp drop from the 40 percent level last week.
Soybean conditions also declined to 34 percent from 40 percent last week, but the soybean crop, unlike corn, still has time to recover.
“We feel we should get back to $8. Our numbers with our sharply adjusted demand imply only $7.90 for December corn, but we do feel trade enthusiasm in the next couple of weeks will push it up above $8,” said Rich Nelson, director of research at Allendale.
The record high was $7.99 per bushel, reached last June.
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