Summary Box: Corn supplies higher than expected

AP News
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Posted: Jul 12, 2011 4:15 PM
Summary Box: Corn supplies higher than expected

CORN SUPPLIES UP: The U.S. Agriculture Department estimates that 880 million bushels of corn will be left over when the harvest begins in the fall, an increase from the previous estimate of 730 million acres.

WEATHER IS KEY: A bigger crop doesn't guarantee lower food prices. A drought or flood could limit the size of the harvested crop. Traders will be watching daily weather reports to make sure the crop comes in as large as hoped.

FOOD INFLATION COULD SLOW: It typically takes six months for changes in commodity prices to affect retail food prices in the U.S. So consumers could see some relief at the supermarket by early 2012.