Drought dries out corn and soy profits, raises prices

In Argentina, a drought that started on September 21 continues to wreak havoc on late-season soy and corn plantings as well as existing, growing crops. Prices on soybean and soymeal reached their highest levels since July because of the Argentina drought, especially since it is the top global supplier of soymeal livestock feed and soy oil used for cooking and biofuels. While more rain than usual fell earlier this year, the last six months have seen drought because of a change in the La Nina climate phenomenon, according to Reuters.

Corn and soy farmers are very concerned about recovering investments made in the crops this year. Juan Graneros, a soy and corn farmer, told Reuters, “I already paid the lease and the inputs. I have to plant no matter what, and try to lose as little as possible.” Even if rain falls in the coming week, it won’t be enough to fix the damage done.