21.09.2012 - Commodities: US drought threatens volatility for next 12 months
The worst US drought in 50 years has sent commodity prices in grain and livestock to record highs, and in spite of a drop-back in prices, traders say volatility is to be expected for as much as another year. As of September 4, the soya bean price was up 32% and that for corn up 45% since the end of May. The effects are not only being felt in ethanol production and livestock feed. According to farmers in the western states, large numbers of horses are dying as pastures are completely dry and ranchers cannot afford to buy hay at present prices. "People donít realize how bad it is because horses are not part of the food chain, but the drought has resulted in a lot of animals just starving to death," says one farmer...............................................Full Article: Source
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