Corn price tumbles to five-month low Agricultural commodities prices fell sharply with corn hitting its lowest in five months as investors bet that production will rebound strongly next year. The price drop in the final days of December is capping a tumultuous year for agricultural commodities. Bad weather earlier this year in key producing areas in the US Midwest, the former Soviet Union and Latin America had reduced the size of the grains and oilseeds harvest, pushing costs significantly higher. The price surge earlier this year was the third major increase in food commodities in five years. On Thursday, CBOT March corn fell to a session low of $6.87½ a bushel, the lowest since early July, and down nearly 19 per cent from an all-time high of $8.43¾ set in August after the worst drought in 50 years in the US. Analysts forecast that farmers will sow far more acres even than in 2011, when they already dedicated to the crop 96.4m acres, the most since 1937 - attracted by corn prices that were historically high. Informa, a closely watched crop forecaster, this week said US farmers would plant 99m acres with corn in 2013. If the planting forecast holds and good weather allow for the development of the crop, the US could harvest a monster crop that will put pressure on prices. But the price drop could be shortlived, as corn inventories are critically low and falling costs will spur demand from the livestock industry, analysts said. Moreover, the weather remains dry, potentially hurting planting next year. Cargill, the world's largest trading house, has in recent months warned about the potential of short supplies and higher prices at the end of the crop season in March-April. But Jack Scoville, of the Price Futures Group, a broker in Chicago, said US corn prices were still relatively high compared with other exporters, adding that "most demand still seems to be filled by Brazil or other sellers at this time." Soyabeans prices were hit after the US Department of Agriculture disclosed that Chinese importers had cancelled a second cargo of US soyabeans. CBOT January soyabeans fell to $14.02¾ a bushel, approaching a six-month low. Although wheat prices also fell on the day, the cereal remained better supported as traders and analysts worry about a drought in the centre of the US, which could reduce production of hard red winter wheat, used to produce bread, next year. The USDA this week said 60 per cent of the US high plains, a critical wheat production area in the centre of the country, was suffering from extreme or exceptional drought, up from 58 per cent the previous week. The worst areas are Nebraska, South Dakota and Kansas. Oklahoma is also suffering.