Huge Yield Boosts Corn Crop

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Now we know how the tension between flood damage and ideal summer growing conditions balanced out in the American Midwest. This morning the USDA forecast 12.3 billion bushels, a decline of 6 percent from last year's record. But the number is far higher than earlier projections (and higher than drunk farmers predicted when we asked them at the Iowa State Fair).
Many acres in the Midwest have gone unplanted in the wake of the flood. So how did the crop projection increase. The boost seems to have largely resulted from heightened yields due to good growing conditions. Corn farming is producing 155 bushels per acre, up 3.9 bushels from last year. This would make this year's yield the second highest on record if it bears out.
The huge yields will likely lower prices on corn, increasing corn's usage in ethanol and feed, according to a separate report from the USDA. Exports, however, are projected to remain unchanged due to increased competition from wheat.

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