Drought taking toll on corn crops, and prices

(CBS/AP) ST. LOUIS - The drought affecting America's Midwest continues to take its toll, as the Agriculture Department said Friday U.S. corn growers could end up with their lowest average yield in 17 years.

The USDA is slashing its projected U.S. corn production forecast for the year to 10.8 billion bushels, down from its forecast last month of nearly 13 billion bushels - and a dramatic 13 percent decrease from 2011, with average yields projected to be at their lowest since 1995.

Soybean production is also forecast down 12 percent from last year.

Drought conditions in parts of the U.S. - the world's number one exporter of corn, soybeans and wheat - are causing food prices to rise around the world. CBS News MoneyWatch correspondent Ines Ferre said the U.N. index that tracks international food prices shows corn prices up nearly 23 percent in July.

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The surge in corn prices in the U.S. is leading to soaring feed prices - which means growing costs for ranchers raising cattle.

"Right now corn is at an all-time high," said Dr. George Beele, East Texas Livestock Adviser. As a result, "we probably sold 30 to 40 percent of our herds. People have culled, culled, culled, and a lot of them have completely sold out."

Cows are limited in number due to a record culling of Texas cows last year, also due to drought and lack of feed.

But livestock dealers selling that cattle are making hefty profits as the price of beef goes up, too. At the East Texas Livestock Auction, they're receiving a pretty penny for their cows, with prices up between 40 to 50 percent compared to last year.

Beef prices, the USDA says, are already up about 15 percent from two years ago and may jump another five percent next year.

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According to the USDA's World Agricultural Supply and Demand Estimates report released Friday, the large reduction in U.S. corn supplies and the sharply higher price outlook are expected to further reduce the use of corn in 2012-13 for food, livestock feed, and industrial purposes, such as ethanol.

Wheat production has increased slightly, as global wheat consumption in 2012-13 appears on the rise, as a number of countries are expected to shift some of their livestock and poultry feeding from corn to wheat.

[rockychance]

How much longer are you people going to put up with lying democrats and republicans? As an indendent all I hear is lies. democrats to payoff the corn farmers say we need corn in our gas and republicans say that oil does not pollute. Folks, you have been taken for a ride for years and years yet you continue like blind sheep to follow the liars. How can we last if you are too stupid or dishonest not to admit your party lies, lies and then lies a million times more.

[sepa2]

someone said human mannerism will only last two missed meals.

[lesserof2evil]

The conservatards didn't pray long and hard enough, so their Gos is punishing us until they do. So fools, go pray.

[EmpireGeorge______--]

occupy_cbs, interesting to find out you are a pig farmer....explains where you get your endless supply of skatology.

[norulers]

Since a lot of this corn is GMO, we're all better off without it. It's poison.

[chipsmydog]

The earth was cursed, as was man, at the Fall. It is slowly winding down and when God Almighty says the time has come, He will wrap things up and establish a new heaven and earth for His people.
Jesus Christ is the answer, always.

[KPeters_from_UK]

Okay.............(rolls her eyes)............

[sepa2]

will this guy lead a mass suicide cult?

[KPeters_from_UK]

I wonder if the farmers will all get subsidies assistance from the Federal government? Oh wait...that's welfare isn't? Aren't we against welfare or any kind of assistance? Guess all you good folks are out of luck. You are on your own ...remember we just don't have the money.

[louiville2_2]

Ummm they have "crop insurance", not usually mentioned for the doom despair MSM message they want to present to sell to people like you.

[KPeters_from_UK]

Good! Use the insurance but unfortunately many do not have insurance and for a lot of them they are going to beg for governmental assistance to make up the the much needed difference.

[occupy_cbs]

Actually, cows should not be in feed lots eating corn in the first place, and should be out grazing on grass.

[EmpireGeorge______--]

it depends if you prefer corn-fed beef or grass-fed.....there is a distinct flavor difference......and you did know these are being grown to harvest for food only, they aren't pets......and many livestock eat both......but you are clueless about everything in life, and this is no exception, cryster.

[KPeters_from_UK]

but you are clueless about everything in life, and this is no exception, cryster.

Wow! George, many could say the same about you. You are an ass.

First, grass feed beef tastes much better and is better for you. Most Michelin Star restaurants (need I explain to you what Michelin Star is all about?)and top chefs prefer grass feed beef. Unfortunately it is more expensive.

Secondly, you have proved yourself lacking in knowledge. If you you want I could remind you of your sorely lack of understanding about the illegal hunting which occurs from the seas off of Hong Kong to Chile of sharks for fin soup. I remember you tried pathetically to diss me on the topic of sharks and I came back with tons of info. You are clueless about everything in life, and this is no exception!