Bloomberg is reporting that estimates for the production of the corn crop in Iowa have been reduced downwards.
This follows abnormally dry conditions that have led to a drought in many parts of Iowa, coupled with extremely hot and humid temperatures throughout the state.
Whilst conditions aren’t as severe as in other parts of the United States such as Texas and Oklahoma, they are worse than anticipated.
Earlier, in August this year, the US Department of Agriculture was estimating that corn production in Iowa would be on average 177 bushels per acre.
Whilst this was down on 182 bushels in 2009, it was seen as an improvement over the low figure of 165 bushels per acre from last year, that was in large part due to water soaked crops.
Private forecasters are now reducing that estimate down even further to about 164 bushels per acre.
Full story : Bloomberg