A widespread drought across the country has had a detrimental effect on crops, which has been reflected through the agriculture supply chain, also struggling lately.
According to the U.S. Department of Agriculture, the country's drought is one of the most serious the country has had in the past 25 years, according to Healthcare Finance News. Secretary of Agriculture Tom Vilsack described the severity of the drought recently in a press briefing in which he revealed 78 percent of the country's corn crop and 77 percent of the soybean crop are in drought areas, which is having a hugely detrimental effect on supply.
“The prices were reflecting ample supplies going in this year so I think a lot of people got caught short, expecting to be able to obtain supplies much cheaper as the harvest went along,” said Mike Zarembski, a senior analyst at OptionsExpress by Charles Schwab, who was quoted by HFN. “Unfortunately, this drought hit starting six weeks, eight weeks ago here in the Midwest and it has completely devastated - especially the corn crop is really going to be hard hit this year.”
Smithfield Foods, one of the world's largest pork producers, recently announced that it is planning to import corn from Brazil due to effects from the drought and increasing costs.
According to the U.S. Department of Agriculture, the country's drought is one of the most serious the country has had in the past 25 years, according to Healthcare Finance News. Secretary of Agriculture Tom Vilsack described the severity of the drought recently in a press briefing in which he revealed 78 percent of the country's corn crop and 77 percent of the soybean crop are in drought areas, which is having a hugely detrimental effect on supply.
“The prices were reflecting ample supplies going in this year so I think a lot of people got caught short, expecting to be able to obtain supplies much cheaper as the harvest went along,” said Mike Zarembski, a senior analyst at OptionsExpress by Charles Schwab, who was quoted by HFN. “Unfortunately, this drought hit starting six weeks, eight weeks ago here in the Midwest and it has completely devastated - especially the corn crop is really going to be hard hit this year.”
Smithfield Foods, one of the world's largest pork producers, recently announced that it is planning to import corn from Brazil due to effects from the drought and increasing costs.
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