Drought

Due to the drought in the USA, Europe and Russia, world and US corn stocks are smaller than traders expected. US corn stocks are the lowest in 17 years, equaling a 3-week supply. USDA has cut Australia's wheat crop estimate by 12 pct and Russia's by 3 pct.

Corn futures were up 3.6 pct, soy up 2 pct on USDA data.

Drought

Brazil ships corn to drought-stricken US to satisfy concerns by the livestock, poultry and ethanol industries over available and future stocks. This situation seems strangely akin to Saudi Arabia importing oil, but underlines the severity of the USA drought.

 

Drought

Wheat, soybean and corn prices rise to record highs as adverse sentiment due to the US drought hits world markets.