Corn Falls From Record as USDA Sees High Prices Eroding Demand

Corn futures fell the most in four weeks on signs that record-high prices during a crop-damaging U.S. drought may erode grain demand by makers of animal feed, ethanol and food products.

While the domestic harvest probably will drop 13 percent to a six-year low of 10.78 billion bushels this year, demand will shrink 10 percent from a year earlier, the U.S. Department of Agriculture said today in a report. Corn futures are up 60 percent since mid-June as the crop conditions deteriorated to the worst since 1988.