GO
Loading...

Corn Reserves Expected to Rise, Easing Food Prices

U.S. corn surpluses are expected to increase higher than anticipated this summer and grow even more next year, a trend that could help ease rising food and grain pricesthis year.

corn_200.jpg
Eri Morita | Riser | Getty Images

The Agriculture Department reports that corn reserves are projected to increase to 730 million bushels in late August, when the harvest begins. That's up from last month's estimate of 675 million bushels.

The government estimates the large corn crop being planted now will help drive the corn surplus back up to 900 million bushels by late 2012. The price of corn affects most products in supermarkets.

Corn is used to feed livestock and chickens and is the main ingredient in cereals and soft drinks.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Chad Devereaux examines bricks on Nov. 6, 2011, that fell from three sides of his in-laws' home in Sparks, Oklahoma, after two earthquakes hit the area in less than 24 hours.

    "Oklahoma is the most striking case, where the number of earthquakes is now at record levels," says a USGS official.

  • Private Jet

    Like migrating birds, private jet setters follow a basic instinct when it comes to their flight paths: They follow better weather.

  • Fake Apple Watches... can you tell the difference?

    CNBC's Eunice Yoon reports Apple Watch is officially available today but already fake watches are hitting the streets.

U.S. Video