Executive Briefings

Drought in U.S. Midwest Affects Food Supply Chain Worldwide

When rain doesn't fall in Iowa, it's not just Des Moines that starts fretting. Food buyers from Addis Ababa to Beijing all are touched by the fate of the corn crop in the U.S., the world's breadbasket in an era when crop shortages mean riots.

This year they have reason to be concerned. Stockpiles of corn in the U.S. tumbled 48 percent between March and June, the biggest drop since 1996, the U.S. Department of Agriculture said. And that was before drought hit the Midwest. Chicago last month saw its first 100F June day since 1988, the year parched ground caused $78bn in crop damage. The percentage of the corn crop with top-quality ratings was 48 percent as of July 1; it was 69 percent a year ago. And with little rain in the forecast, farmers can only hope to preserve what crops they can while watching corn futures rise 33 percent since June15, to $6.75 a bushel.

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Keywords: international trade, supply chain risk management, food supply chain, food logistics

This year they have reason to be concerned. Stockpiles of corn in the U.S. tumbled 48 percent between March and June, the biggest drop since 1996, the U.S. Department of Agriculture said. And that was before drought hit the Midwest. Chicago last month saw its first 100F June day since 1988, the year parched ground caused $78bn in crop damage. The percentage of the corn crop with top-quality ratings was 48 percent as of July 1; it was 69 percent a year ago. And with little rain in the forecast, farmers can only hope to preserve what crops they can while watching corn futures rise 33 percent since June15, to $6.75 a bushel.

Read Full Article


Keywords: international trade, supply chain risk management, food supply chain, food logistics