© Seth Perlman/AP
Steve Niedbalski shows his drought and heat stricken corn while chopping it down for feed Wednesday, July 11, 2012 in Nashville Ill. Farmers in parts of the Midwest are dealing with the worst drought in nearly 25 years.
Steve Niedbalski shows his drought and heat stricken corn while chopping it down for feed Wednesday, July 11, 2012 in Nashville Ill. Farmers in parts of the Midwest are dealing with the worst drought in nearly 25 years.
Seeking to protect their populations from hunger this time, many countries relying heavily on imports have held off for now, touting healthy stock levels and hoping other sources will come through and bring prices down.
But their hopes may be dashed if they all return to market at once.
With so much of the world putting faith in a record U.S. corn crop, it is little wonder that prices have surged around 40 percent in the past three weeks as relentless dry weather melted yield expectations for cereals. Soybeans are at record highs, while wheat is not far behind.
"Production potential looked great and it kind of lulled these end-users into a false sense of security. At that point we were seriously looking at (corn) prices under $5 if weather conditions remained ideal, but now we've rallied sharply higher and never looked back," Jefferies Bache analyst Shawn McCambridge said.
Comment: Indeed, something is 'up'...
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