The effect of the drought on corn prices will not be felt for another year or so. However, in the meantime, wholesalers and retailers will anticipate inventory scarcity by increasing prices in the short-term.
CHICAGO (Reuters) - Wetter, cooler weather was moving into the drought-stricken U.S. crop belt on Friday, and while the change comes too late to benefit the devastated corn crop, it may give some solace to soy.
As the worst drought in over a half century took its toll, investors went on a buying spree, boosting corn prices by more than 50 percent from late May to fresh record highs above $8 per bushel. The U.S. government on Friday released fresh crop data that revealed shocking cuts for this year's grain and oilseed output as the drought spread through America's breadbasket.
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