Earlier this year, it was thought that the floods that hit the Midwest this spring had devastated any chance of a bumper crop, however; warm weather and good growing conditions have helped crops stage an incredible comeback. Tuesday's USDA August Crop Report shows the potential for the second largest corn harvest in history. Although the estimates look promising, USDA Chief Economist Joe Glauber says anything could happen to the crop which is a week to 10 days late due to delayed planting.

"Even with this crop and presuming that we get these yields we're going to have low stock levels coming out next year," Glauber says. "You know we are going to be facing next year, planting decisions where, because of the expected demand, we're going to need a lot of acres going into corn and probably high demand for soybean acres. So there will be a repeat in one sense of the similar situation we saw this spring."

Because of the predictions of a large crop, prices are likely to move lower helping both the livestock and ethanol industries.