The worst drought in fifty years has caused a decline in the stockpiles of crops such as corn, soybeans, rice and wheat, with the subsequent all-time increase in the prices of corn and soybeans. Good news for commodities investors.
The drought has also affected fuel and power production which, in turn, have a negative effect on food prices. Read more…
- Unfavourable weather behind the July rebound of the FAO Food Price Index – FAO Food Price Index [Food and Agricultural Organization of the United Nations]
- America’s disastrous corn harvest will hit world’s poor hardest [The Guardian]
- World food prices rising in response to drought damage in the US – Ole Hansen [TradingFloor.com]
- Global food reserves falling as drought wilts crops – Tony C. Dreibus and Elizabeth Campbell, Bloomberg [Futures Magazine]
- USDA slashes corn yield, production forecast – Bill Tomson [Market Watch]