Corn prices surge to record high

Image via WikipediaCorn prices surged to a record high for the year Friday as traders questioned whether crop yields will fall short of expectations.

Corn for December delivery rose 17 cents, or 3.8%, to settle at $4.6450 a bushel. The price was just shy of the June 2009 record of $4.70 per bushel for the December contract, Telvent DTN analyst John Sanow said.

As the nation's harvest gets underway, there have been some signs that the number of bushels per acre will be less than the government's forecast of a record 165 bushels per acre, analysts said.

East of the Mississippi, the weather has been hotter and drier, which could have affected the crop, Frontier Ag analyst Larry Glenn said.

The situation could change as more farmers begin to pull crops from the field. Meanwhile, supplies remain tight and global demand continues to grow, Sanow said. More...