FXstreet.com (Barcelona) - The drought currently afflicting the US has seen very sharp
increases in grains and oilseeds prices in recent weeks, with
prices for corn, wheat and soybeans up more than 40 per cent
since late May. The pervasiveness of the drought is considerable, having resulted in very large downgrades to the US corn and soybean crops since the start of the year.
Over the past couple of months, rainfall across most cropping regions has been well below average, while searing heat has seen the emergence of severe-to-extreme drought conditions, decimating yields. Such is the scale of the US drought that the USDA recently declared a federal disaster area in almost one-third of the counties in the US – more than 1300 counties across 29 states.
In addition, according to the NAB Analyst Team, “Food security concerns are likely to arise in Middle East and Central America due to low stocks and high commodity price pass-through – In particular, emerging Asian countries are vulnerable, however stocks should help buffer against supply shocks.”
Over the past couple of months, rainfall across most cropping regions has been well below average, while searing heat has seen the emergence of severe-to-extreme drought conditions, decimating yields. Such is the scale of the US drought that the USDA recently declared a federal disaster area in almost one-third of the counties in the US – more than 1300 counties across 29 states.
In addition, according to the NAB Analyst Team, “Food security concerns are likely to arise in Middle East and Central America due to low stocks and high commodity price pass-through – In particular, emerging Asian countries are vulnerable, however stocks should help buffer against supply shocks.”
