US heat wave expected to lower corn yields, pressure prices

In Indiana, farmers are expecting a decrease in corn yields due to the heat wave that has put temperatures in the mid-nineties for the whole week. The exact effect on ultimate yields will remain unknown until harvest in October, but the decrease in supply will no doubt further impact already record-high corn prices.

Already, the USDA is already predicting corn to be $6 per bushel for 2011, and the debilitating dry spells during pollination time will certainly not lower that estimate.