The USDA’s weekly crop report states 50% of US Corn Market is in poor condition. Similarly, 39 percent of the soybean crop is in poor condition. While there may still be time for recent rains to revive some of the soybean crop, corn fields are too far gone, leaving little hope for a cool-down in near-record prices. The US is the world’s largest grower and exporter of corn and is anticipating the worst output in six years, fueling a 58 percent surge in corn futures and a 19 percent gain in soybean prices since June 15. Given this summer’s drought, the worst since the 1950s, it is not surprising that the corn crop has taken a beating. The result is a surge in global food prices, which could result in another round of food inflation, especially in emerging markets. This follows crop trouble in Europe and poor monsoon conditions in India.
Drought Drives US Corn Crop – 50% in Poor Condition