U.S. Corn Prices Approaching All-Time High

In Friday morning trading, corn futures jumped again, closing in on an all-time high for U.S. corn, as rising demand in Asia and a destructive drought continue to wreak havoc on the sector.

Weather forecasts were part of the boost in corn price, as they projected rising temperatures and little rain in key corn-growing areas.

Consequently, the condition of the corn will continue to deteriorate, with a growing percentage reaching the point of no return, as some farmers have already began to plow their corn under.

The only good news is the light rains could slow down some deterioration, extending slightly the time frame the corn needs for significant rains to salvage the season. It stands now at less than two weeks before it could become an extraordinary disaster if rains to come in the amounts the corn crop needs.

On the Chicago Board of Trade, the front-month July corn contract jumped to $7.92 a bushel, rising 20-3/4 cents. That's just below the all-time high of $7.99-3/4 a bushel.

Corn for December delivery on the CBOT rose to $7.45-1/4 a bushel, gaining 13 cents, at 8:20 AM CDT.

Price for the new crop contract have soared close to 48 percent over the last month, climbing 18 percent already for July.

If the drought continues, soybeans, which pollinate later than corn, could be the next victim of the drought if weather patterns don't change soon.

Soybeans and wheat continue to rise in price as well, with concerns over the effects of the drought on soybeans if it continues, and expectations wheat demand will rise as corn prices continue to soar.