Posted: Aug 10, 2012 12:46 PM by Eric Hilt
Updated: Aug 10, 2012 6:13 PM
COLUMBIA - The USDA released its production forecast report Friday morning, and the numbers reflected the nation's very dry summer.
According to the report, corn production is down 13 percent from last year and soybean production is down 12 percent.
The report also predicted corn crops will have their lowest average yield since 1995. University of Missouri professor Bill Wiebold said the average yield is the most telling statistic.
"We have a number of things that have moves the average yield up over the past years so to go back...it's pretty dramatic," Wiebold said.
Unusually hot weather and little rain have caused most of the midwest to suffer. Many states have been declared disaster zones because of the drought.
Anticipation of this report drove corn prices to a record high of $8.43 Thursday. Wiebold said the high price could affect the prices of all goods, but the most notable increase will be in meat products.
"Corn and soybeans are used to feed animals, and the producers of that livestock are really hurting because they can't enough corn or soybean to feed to them, or it's so high that they can't afford to buy it," Wiebold said.
Wiebold added that unless Missouri experiences a very wet winter, effects from the drought will carry over into next year.