The US Department of Agriculture projected a sharp decline in corn production for the second consecutive month. Its World Agricultural Supply and Demand Estimates released today forecast U.S. corn production for 2012/13 at 10.8 billion bushels, the lowest since 2006/07.
Soybean production for 2012/13 is projected at 2.7 billion bushels, down 358 million due to lower harvested area and yields, the report said.
The new forecasts come on the heels of FAO’s latest Food Price Index, which rose 6 percent in July after three months of decline.