Corn prices have slumped by almost a quarter since the end of June to around 325 cents per bushel on speculation of a record harvest in the US. The U.S. Department of Agriculture released a forecast in mid-August confirming this view. It predicted a record U.S. corn crop and the biggest yields ever, with a national average of 175.1 bushels an acre
However, the USDA’s forecasts have been prone to major revisions in previous years. In 2010 producers were slow to realize the damage heat had caused, and this year may be no different. Hot weather across the U.S. corn belt in June and July came during critical periods of ear development.