I won't be surprised if corn hits $10/bu this year. Much of the crop across the Midwestern "corn belt" got cooked in the heat and drought this summer.
Speaking as a farmer who grows corn to sell to the market every year, it would probably be a bad thing. $10 corn would cause many end users to go broke and close their doors, reducing the demand so badly that it might take years to recover.
It probably won't go that high, anyway. The USDA August 10 crop report, that the market was anxiously awaiting, contained no news concerning the crop that the market did not already know. The market was down after the report, indicating that the news of the drought is old news now, and that most of the considerations for it has already been factored into the market.
SRH
