US could potentially be in for record corn production

Corn prices in the US are trading near the lowest level in over three years, with several reports believing this is because farmers have accelerated harvesting of a potential record crop.

The US Department of Agriculture is believed to confirm its forecast increase for corn in early November, with country-wide corn production reportedly set to rise by 28% to a record 13.8 billion bushels. It is believed around half this total has already been harvested.

As prices have dropped, the Chicago Board of Trade posted a price of $4.24 (€3.13) a bushel on 5 November, idle corn-based ethanol plants which are now coming back online seem to be doing so at a good time.

One facility owned by Cargill in Iowa has begun operations this autumn and Noble Group has a plant in Indiana which is scheduled to restart in early 2014.

All this news is in stark contrast to the US corn drought of 2012 which plunged food and fuel industries into uncertainty as the driest summer in over 50 years hampered supplies.