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US worst drought since 1956 sends soybeans and corn skyrocketing

Thursday, July 19th 2012 - 18:17 UTC
Full article 7 comments
Praying for rain in the Midwest Praying for rain in the Midwest

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.

Top Comments

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  • Captain Poppy

    Unfortunately this is sure to boost Ms Botox's morale. With a budget based on soy selling at 440 per ton currently trading at 616 she lucked out.

    Jul 19th, 2012 - 06:59 pm 0
  • Think

    Fortunately this is sure to boost Argentina's economy. With a budget based on soy selling at 440 per ton currently trading at 616, we are happy :-)

    Jul 19th, 2012 - 07:29 pm 0
  • Conqueror

    @2 Given the USA's current love affair with argieland, we can expect the USA to buy soy from anyone else first. Perhaps if argieland paid some of its incredibly numerous debts? Still in the billions.

    Jul 19th, 2012 - 07:52 pm 0
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