Monday, July 23, 2012

US corn belt crisis threatens to drive up global inflation

From Williamsport, Ohio, a first-hand account of the worst drought to grip the corn belt of America since 1956: Scott Metzger told Reuters on Friday that it had rained for about 45 minutes on his farm that day, producing 1.3 inches of rain. Respite, but not much. Since 13 May the farm has only had 2.1 inches of rain.
While some parts of the UK have been recording that in a single day, more than 70% of the midwestern corn belt – breadbasket of the world – is gripped by a catastrophic drought. Little wonder that Metzger declared: "This has been my toughest year of farming so far." His corn crop was "finished", he said, because it had never pollinated.
The story is the same across the main growing region in the US, where the National Oceanic and Atmospheric Administration has declared the January-June period the hottest half-year on record in the United States.
The results will be felt far and wide. World corn prices have jumped 55% in just six weeks to a new record. In the first three weeks of July alone, export prices of corn and wheat have increased by an extraordinary 20%. Despite the washout in England and Wales, last month has been declared the fourth-warmest June on record around the globe.

Read more: http://www.guardian.co.uk/business/2012/jul/22/us-corn-belt-crisis-global-inflation

No comments: