Corn Prices Hit 23-Month High

Corn prices rallied to a fresh 23-month high after a closely watched private crop forecaster called the abundance of U.S. grain supplies into question. Informa Economics, a Memphis, Tenn.-based agricultural consultancy, is projecting that the current U.S. corn harvest will yield on average 3.9% less than the latest estimate by the U.S. Department of Agriculture. This is a significant downgrade in a time of tight global grain supplies. Russia has banned exports of wheat for several months in the wake of a record drought. This has put pressure on markets for other grains, as consumers such as livestock-feed suppliers look for substitutes, and sparked fears of global food shortages. Informa Economics estimates a final U.S. corn yield of 158.5 bushels an acre, according to information reviewed by Dow Jones Newswires. The firm doesn't publicly release its predictions. That compares with the USDA's most recent estimate of 165 bushels an acre. Corn prices surged after the firm distributed its figures to customers. The front-month contract, for September delivery, settled 3.9%, or 16.75 cents, higher at $4.4975 a bushel on the Chicago Board of Trade...more