Second Largest Corn Harvest Expected Despite Flooding

August 13, 2008 1:04 p.m. EST

Washington, D.C. (AHN) - Up to 12.3 billion bushels of corn are expected to be harvested this season in the U.S., despite the recent Mississippi flooding which inundated many farms in the Midwest.

With 600 million extra bushels for the summer harvest, it will be the second-highest corn yield on record, according to the U.S. Department of Agriculture.

Prior to the confirmation of the bountiful harvest, there were fears the Midwest flooding could lead to food shortages and major economic losses for American farmers.

Before perfect weather was enjoyed by farmers recently, corn future prices rose to $8 per bushel. On Tuesday, it was at $5.28 after falling for several weeks.

The highest corn harvest recorded was in 2004 at 160.4 bushels per acre, while this year it was 155 bushels.

At the same time, the government placed soybean harvest at 2.97 billion bushels, down by 30 million bushels from previous forecasts. Like corn prices, soybean futures had declined to $12.14 a bushel by Tuesday. Just over a month ago, soybean futures went over $16 a bushel.

Demand for corn and soybeans have gone up in recent years both as feedstock for biofuel production and kitchen consumption.