Heatwave affects European commoditiesEurope is facing extreme heat at the same time that the United States is suffering through a historically bad drought, meaning that major corn-producing regions will be unable to supply the crop at normal levels, according to Bloomberg News.

Heatwaves in southern Europe withered the corn crops and reduced yield, negatively affecting the region, which according to Bloomberg produces 16 percent of global exports.

“Everyone is looking to the U.S., but clearly in Europe we’ll need to import a lot of wheat and corn,” said Cedric Weber, the head of market analysis at France's Offre et Demande Agricole, which advises about 5,000 farmers on sales. “That’s just adding to the problems we’ve got everywhere.”

Temperatures have been about 5 degrees above normal in the areas around the Mediterranean and Black Sea, U.S. government data shows, according to Bloomberg. Temperatures are pushing 95 degrees Fahrenheit in these areas. This is 3 degrees higher than the danger threshold for corn, which is reaching the kernel-producing pollination phase of growth this time of year.

The drought in the United States has impacted the supply chain already, with some U.S. companies turning to Brazil for feed grain, the Wall Street Journal reported.
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