Wednesday, August 24, 2022

European Corn Yields Expected To Plunge Amid Worst Drought In 500 Years

 Besides the news of record high electricity prices, a troubling new crop failure report about Europe's upcoming harvest was published Monday. The bloc's Monitoring Agricultural Resources forecasted corn yields could drop by nearly a fifth due to a devastating drought, according to Bloomberg

The warning on the stones appears correct because the new crop report forecasts corn yields will drop 16% below the five-year average. That compares with a July forecast of an 8% decline.

The plunge in corn output could result in further food inflation. It will boost feed costs for livestock herds, adding to even more woes for farmers who are plagued with elevated diesel and fertilizer prices...MORE

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