US worst drought since 1956 sends soybeans and corn skyrocketing
The commodities soy and corn’s prizes sky rocked on Thursday thanks to the severe drought that has been punishing the United States heartland. Soy and corn were being sold at record high of 638.89 dollars/ton and 320.26 dollars/ton respectively.
The US top two corn and soybean producing states, Iowa and Illinois, are now in the centre of the drought as the dryness spreads to the northwest to leech what little moisture remains in already parched soils.
The worst drought in a half century will continue to plague most of the US Midwest crop region for at least the next 10 days, with only occasional showers providing some relief mainly in the east, an agricultural meteorologist said on Thursday.
Chicago Board of Trade (CBOT) corn has soared nearly 50% in just six weeks to a record high $8.08-1/2 per bushel, besting the previous record of $7.99-3/4 set 13 months ago.
CBOT soybeans notched record highs for two days in a row reaching a peak of $17.23 per bushel, above the previous record of $16.85-1/2 hit the previous day and up 30% since early June.
As the drought, rated the worst since 1956, expands to the northern and western Midwest, areas that had previously been spared, analysts were slashing corn yield estimates by the hour. Some were also starting to cut their forecasts on the number of acres that will be harvested as farmers opt to plow under some of their parched fields to claim insurance.