Nelson said demand destruction should start to come into play in the next couple of weeks, and that should keep a lid on prices.

“You’re not going to have everyone talking about it, but then suddenly it’s a whipsaw.”

The impact of rising prices is already being felt by the livestock industry, one of the biggest users of corn.

“We haven’t seen significant change yet in the breeding curve for any of the three main species, but all three industries are talking about smaller numbers,” said Nelson.

“As for pork, they’ll see their smaller production level next summer. In terms of cattle, it will be March/April in terms of shortfalls,” Nelson said. “And the chicken people might start dropping numbers in the next couple of months. By spring of next year, we should start seeing the result of this issue hitting the consumer.” (Watch:Protein Shortage Ahead?)

U.S. feeder cattle futures fell Tuesday to a more than nine month low as rising corn prices squeeze feedlots, resulting in the purchase of fewer younger animals. Hog futures also were lower.

Nelson said he has reduced his expectation for the corn crop to just 12.053 billion bushels, the lowest since 2006. He also expects the corn yield per acre is at around 137.2 billion bushels per acre currently, and that it could fall to 129.1 over the next couple of weeks. The USDA last week forecast the crop yield at 146 bushels per acre, down from its original forecast for a record 166 bushels.