The worst drought in more than 50 years in the Midwest of the U.S. will sharply reduce the amount of corn that farmers harvest, Bloomberg reports.
The U.S. Department of Agriculture slashed production by 17 percent earlier this month after this past July registered as the hottest since 1936. Roughly 51 percent of nine top-growing corn states in the Midwest endured drought conditions ranging from moderate to exceptional, which is significantly larger than the 1 percent from 12 months ago.
The grain has advanced about 60 percent since the middle of July as a result of the drought, Bloomberg reports.
"The rains have at least stabilized the corn crop, and soybeans may add a few bushels," senior analyst Dale Durchholz with AgriVisor in Bloomington, Illinois, told the news source. "The big USDA cuts probably account for most of the drought losses."
At 2:59 p.m. on Monday, corn futures climbed 2.07 percent, a 0.1675 cent gain to $8.24 per bushel.
Corn futures on Monday drove to their highest in more than seven days, according to Reuters. Preoccupations about supplies in the Midwest are largely accountable for the spike.
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