With the ongoing drought across the globe, and especially in America, corn production and yields are quickly becoming one of the most vital data indicators in the economy. On Aug 10, the USDA issued its projected corn harvest for 2012, and the results were a 17% drop in yields, and a dire outlook for several industries and communities that rely upon the farm staple.
At the end of June, corn futures were selling for 657 a contract. Today, corn futures reached an inter-day high of 827 per contract, an increase in price of 26% in less than a month and a half. Projections could raise corn prices to between $10 and $11 per bushel, which would create a price in inflation in food and ethonol to record highs.