Corn Climbs Toward $7 as Brazil Drought Adds to Supply Woes
- Dryness is still parching fields in the Brazilian corn belt
- Corn is near an eight-year high on tight global supply
A corn field in San Luis Potosi, Mexico, on Sunday, Feb. 7, 2021.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Corn futures extended a rally toward $7 a bushel, as ongoing drought in Brazil threatens supply in the world’s second-largest exporter.
Prices rose as much as 2.1% to near an eight-year high. Dryness is hampering the country’s key second-crop corn, and rain in the coming week will fail to reach some key growing areas, according to Somar. That could further hurt yields, and analysts including Safras and StoneX Brazil have cut estimates for the coming harvest. A production shortfall there would compound stretched global grain supplies and risk further stoking food inflation.