Be the first to like this
TWO months ago the USDA shocked markets with a massive US maize crop forecast that promised to cap costs across the feed sector and take upward price pressure off relatively adequate wheat supplies. Two months later, Mother Nature has provided an even bigger surprise – probably the worst US combination of drought and heatwaves since the 1950s – possibly even since the ‘dust bowl’ days of the 1930s. Crop estimates are sliding weekly. Maize production may turn out the smallest since 2006/7’s 267.5m tonnes, more than 100m under the USDA’s original 376m tonne target – perhaps even smaller. Soyabeans could shrink to a four year low of 76/78m tonnes compared with early hopes of 87m.