Corn soars on estimate of small harvest

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Associated Press

Posted on October 11, 2012 at 3:00 PM

Updated Thursday, Oct 11 at 4:01 PM

The price of corn is soaring after the government predicted that this year's harvest could be the smallest in six years.

Corn for December delivery rose 5 percent Thursday to finish at $7.7325 per bushel. Prices for soybeans and wheat also finished higher.

The U.S. Agriculture Department is predicting that the corn harvest would total 10.7 billion bushels, the smallest since 2006. The average yield is forecast at 122 bushels per acre, which would be the lowest since 1995.

Production of the drought-devastated crop probably won't ease a shortage in stockpiles. That means consumers likely will see higher prices for meat and products that contain corn.

In other trading, prices are higher for gold, industrial metals and oil. Wholesale gasoline and silver are lower.

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