USDA: 'Megadrought' Threatens Corn, Soybean, Worsening Food Shortages

USDA says “megadrought” threatens American corn, soybean yields, worsening food shortages

By Ethan Huff

A recent crop tour conducted by the U.S. Department of Agriculture (USDA) has found that conditions are worsening for the nation’s corn and soybean crops. Excessive heat combined with dry weather has taken a major toll on these two industrial staple crops, which are expected to have massively lower yields amid ongoing “megadrought” conditions across much of the United States.

The percentage of soybeans considered to be in “good” to “excellent” condition dropped by another three percentage points this past week to just 57 percent, missing analyst estimates of 60 percent. As for corn in the same condition, this crop fell two percentage points to 62 percent, missing the expected mark of 64 percent.

Most of the megadrought is centered over the western U.S., with large swaths of the upper Midwest also affected. Back-to-back heat waves have only made matters worse with more crops being damaged by the dry heat. The USDA’s “World Agricultural Supply and Demand Estimates” (WASDE) report suggests that a continued decline in crop quality will only further increase the cost of food at the grocery store.

Wheat is also being affected, with world inventories now reporting a five-year low. This is after the polar vortex from back in February that destroyed much of the country’s wheat crop. The markets continue to show inflating prices for wheat and other crops, as futures soar in expectation of worsening conditions.

“Diminished crop yields and inventories due to adverse weather conditions mean food inflation will be sticking around well through 2022,” reported Zero Hedge.

“… and what does this all mean for the average consumer? Well, grocery prices are expected to surge later this year.”

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