Juror Flirting With John Edwards
Obama's Pot-Smoking Detailed
ST. LOUIS -- U.S. farmers are expected to boost the size of this year's corn crop, potentially easing global food inflation.
The Agriculture Department reports that farmers intend to plant 92.2 million acres of corn this spring, a 5 percent increase over last year. That would make it the second-biggest corn crop since 1944, after a record-setting planting in 2007.
Grain prices are at their highest levels since the food crisis of 2008. New production will help ease concerns over a supply pinch. Worries over a shortage have doubled the price of corn since last summer, from $3.50 to more than $7 a bushel. The high prices are encouraging farmers to plant more corn.
Some of that increase comes at the expense of this year's soybean crop. Farmers intend to plant 76.6 million acres of soybeans, down 1 percent from last year.
The extra corn production is already calming food markets. The price of corn fell this week in anticipation of the USDA report, dropping to $6.60 a bushel Thursday morning. Soybean prices rose slightly to $13.78 a bushel Thursday.
It can take months for the price of grain to filter through the cost of groceries. That's because ingredient costs account for just 10 percent of the price of the processed food Americans buy.
Analysts caution that the increased corn production won't be enough to reduce food prices much, if at all. But it could slow price increases.
US Expects Bigger Corn Crop to Ease Food Inflation
Mar 31, 2011 – 9:22 AM
AP
Tagged: agriculture, agriculture department, corn, farmers, farming, food, food industry, food inflation, food prices, USDA
Romney Argues Big Spending Cuts Would Cause 'Depression,' Contrary To Tea Party Activists
Scott Walker, Tom Barrett Face Off In First Wisconsin Recall Debate
A New Murdoch Scandal Emerges
The Mortgage Mess: Just How Many Screwups Were There?
Devils Down Rangers, Headed To Stanley Cup Finals
GOP Governor Signs Bill Banning Islamic Law
The Story Behind Clinton's Porn Star Picture
Pedro Hernandez Charged In Etan Patz Death
Scott Walker Recall Race May Be Tightening
WATCH: Fox News Besieged By Technical Difficulties
Romney To Pay More In Taxes?
Cory Booker Goes Off Message, Everyone Freaks For A Week: The Speculatron Weekly Round-Up
Joe Biden Recalls Thoughts Of Suicide
More Trouble For Rick Scott
Over 50 Reportedly Killed By Syrian Forces
Police: Indiana Gunman Who Held Hostages Shot Self In Head
JPMorgan Risk Committee Missing People With Experience Monitoring Risk
GOP Congressional Candidate Accuses Opponent Of Spying On Campaign
Geologists Confirm Possible Jesus Crucifixion Date
Tom Coburn Gets Big Penalty From Fellow Senators
WATCH: Meghan McCain Lashes Out At Republicans
Arianna Huffington: The Inspirationals: Jeff Skoll, Doubling Down on the Things That Work
What Bin Laden's Wives Revealed
