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.
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.