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Unit 1 Micro: Drought and US Corn Prices

Wednesday, August 08, 2012
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This news video from the Economist looks at the impact of the severe drought affecting commercial corn farmers in the United States this year, the drought that plagues most of America has left acres of little more than dry, burnt stalks. July 2012 was hottest US month since records began and the latest forecast is the smallest corn yields for over six years. How will this affect market supply and corn prices in the United States? Which industries rely on corn as a key raw material? How will consumers in the UK be affected?

Remember that the United States is the world’s largest exporter of corn, soybeans and wheat. Ethanol production accounts for about 40 percent of the U.S. corn crop.

More reading here: CNN news: The global impact of the U.S. drought

BBC news

 

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