Maize: Continued drought in the US is driving up prices

Basic message

According to the United States Department of Agriculture (USDA), 57 percent of corn crops in the United States are currently affected by moderate to severe drought.

Prospects for the U.S. corn harvest continue to be cloudy. According to the United States Department of Agriculture (USDA), 57 percent of corn plants are currently affected by moderate to severe drought. Last year, the corresponding figure was 17 percent at this time, Thu Lan Nguyen, head of commodities research at Commerzbank, writes in the latest issue of “Raw Materials News.”

“Previously, USDA projected the new 2023-24 corn crop to be above 2021-22 levels, recovering from the previous season’s already drought-affected harvest. Due to difficult weather conditions, this forecast is likely to be increasingly questioned,” Nguyen said.

Corn prices have risen sharply since the middle of last week. After all, the United States is the world’s largest producer and second largest exporter of corn, it concludes.