U.S. Crop Yields Seen Lower Than Expected, Further Driving Up Food Prices
2 min read
Chicago, August 29, 2023 – U.S. crop yields are expected to be lower than the government’s estimates, according to analysts, further driving up food prices.
The U.S. Department of Agriculture (USDA) has forecast a record soybean harvest of 4.74 billion bushels in 2023, up 1.8% from last year. However, analysts at Rabobank and Citigroup are now forecasting a harvest of 4.4 billion bushels, down 7% from their previous estimates.
The USDA has also forecast a record corn harvest of 15.6 billion bushels, up 4% from last year. However, analysts at Commodity Weather Group are now forecasting a harvest of 14.7 billion bushels, down 6% from their previous estimates.
The lower crop yields are being attributed to a combination of factors, including dry weather in the Midwest and the ongoing war in Ukraine.
The war in Ukraine has disrupted global food supplies, leading to higher prices for grain, oilseeds, and other agricultural commodities.
The U.S. is the world’s largest producer of soybeans and corn. A lower crop yield in the United States would further tighten global supplies and drive up prices.
The higher crop prices are already being felt by consumers. The price of bread, pasta, and other grain-based foods has been rising in recent months.
The higher crop prices are also a concern for food security in developing countries. Many developing countries rely on imports to meet their food needs. A higher cost of food imports could make it more difficult for these countries to feed their populations.
Commentary
The lower crop yields in the United States are a major setback for global food security. The war in Ukraine has already disrupted global food supplies, and the U.S. is a key source of grain and oilseeds.
The higher crop prices are also a major concern for consumers. The cost of food is already rising, and the higher crop prices could lead to further increases.
The global food system is facing a number of challenges, and the lower crop yields in the United States are just one of them.
