FOOD commodities such as grain, corn and soybeans saw futures prices soar yesterday after the US government said months of bad weather would slash crop yields.
The department of agriculture said droughts in corn-producing areas and heavy rain and floods in other parts of the US would cut crop sizes.
The US report, based on a survey of farms, said corn production was likely to be 12.9bn bushels, short of analysts’ estimates of 13.1bn. It is likely to further reduce the US corn stockpile, which is already forecast to be the lowest in 15 years.
The USDA also took down its production estimate for soybeans, placing the crop at 3.1bn bushels.
The news is likely to raise the prices of staples such as bread and pasta and meats, as animals are fed on cereals.