Corn Futures Prices Near $8 on Fears of Reduced Crop

Posted by Brian Gould Tue, 17 Jun 2008 15:25:00 GMT

Corn prices reached another record Monday, closing in on $8 a bushel, as devastating Midwest floods raised fears of a sharply smaller U.S. corn crop and another spike in world food prices.

Other commodities traded mostly higher, with gold, silver, copper and wheat futures all climbing. Crude oil surged to a record near $140 a barrel and then fell in volatile trading.

Corn prices have shot up 11 percent in the last week as floodwaters continue to ravage the Midwest, swallowing corn fields just before the crucial growing season. The U.S. government will report June 30 on how many acres have been lost to flooding, but a survey in Farm Futures magazine estimated that flooding could claim 3.3 million acres – or nearly 4 percent of the expected crop.