Corn prices could hit record this summer

Weeks before farmers hit the fields for the 2011 planting season, corn prices are on a run toward record highs this summer.

Two University of Illinois farm economists said in a forecast released Thursday that demand for corn for food, ethanol and export is driving high prices. Beef and pork prices already are at record highs, which have begun to show up in prices at the supermarket.

“It’s certainly getting a lot of attention now that higher commodity prices are being passed along,” said Darrel Good.

Good and U of I economist Scott Irwin said unusually low year-end supplies of corn also contributed to higher prices.

Corn for May delivery closed at $7.36 a bushel. The record $7.61 a bushel came in June 2008.

Good and Irwin said the delicate balance between supply and demand leaves little room for a poor corn crop this summer.

The next big indicator will be a March 31 forecast of 2011 planting intentions from the U.S. Department of Agriculture, which should show whether farmers plan to plant more corn to meet demand, Good said.

“Everyone will be on pins and needles. It will be the first survey that takes a look at what farmers plan to do,” he said.

(Source: http://www.sj-r.com/top-stories/x2022445260/Corn-prices-could-hit-record-this-summer)