Corn, soybean prices at record highs on crop woes

Prices for corn and soybeans hit all-time highs today amid questions about the extent of damage to the crops from the merciless summer heat. Corn for September delivery rose 12.75 cents to finish at $8.07 per bushel, besting its all-time high of $7.87 per bushel set in June 2011. August soybeans gained 50.25 cents, or 3%, to end at $17.33 for a second straight record-setting day. Supplies of both crops are tight globally, and that may not improve much after this year's U.S. harvest. Crop conditions continue to degrade in the blistering heat, and there is little to no rain in forecasts at least through the end of the month. Many analysts are predicting that corn yields could fall to 140 bushels per acre or even lower if the high temperatures persist. Farmers raised hopes for a bountiful harvest by planting 96.4 million acres of corn this spring, the highest number of acres since 1937. Those hopes evaporated by mid-June as the heat took hold. Nearly 40% of the corn crop was in poor-to-very-poor condition as of Sunday, according to the U.S. Agriculture Department, compared with just 11% so rated a year ago. About 30% of the soybean crop was in poor-to-very-poor condition, versus 10% a year ago.