According to the Earth Policy Institute, drought conditions have generated bleak corn yield estimates for the remainder of 2012. Corn yields for September 2012 are estimated at 123 bushels per acre, which would make it the lowest yield since 1995. Compare this yield to the highest ever value of 165 bushels per acre, which was last reached in 2009.
As a consequence, the price of corn has increased significantly. It reached a record high of $8 per bushel in the corn futures market back in July, and has fluctuated around that price since then. Another consequence is the expected fall in global grain supplies. Supplies are expected to fall to 432 million tons, or 69 days of global consumption.