Dry weather in Argentina is hitting the outlooks for wheat and corn crops, local climate experts said, while low-cost soy is being supported by growers looking to hedge their bets with political uncertainty rising ahead of October's presidential vote.
Hot, dry weather will persist across Australia's east coast for at least another three months, the country's weather bureau said on Thursday, in a forecast that threatens to severely crimp agricultural production.
The Brazilian 2018-19 soybean crop will fall to 115.34 million tons, as the effects of hot and dry weather in December and January are gradually taken into account, national crop agency Conab said on Tuesday.
The world could face a food crisis of the kind seen in 2007/08 if countries restrict exports on concerns about a drought-fuelled grain price rally, the UN food agency FAO warned, after reporting a surge in global food prices in July.
Mercosur soybean production is expected to fall 2.9% after dry weather and heat damaged crops in Brazil and Paraguay and as conditions deteriorate in Argentina, Hamburg-based industry researcher Oil World said.
Global production of rough rice, the staple for half the world’s population, may be 6 million tons less than estimated earlier this year after prolonged dry weather in the Mekong River region hurt crops, according to the United Nations Food and Agriculture Organization.