A drought across Argentina has pushed up grain prices that had long been languishing amid years of oversupply. Bumper harvests and genetically modified crops had produced gluts, suppressing prices. But with drought conditions forecast to intensify in the summer of 2016, JPMorgan cut its soyabean and corn production estimates, raising the potential of more price volatility. Soya meal and soyabean futures contracts rose to their highest since March on 2 the summer of 2016.
A drought across Argentina has pushed up grain prices that had long been languishing amid years of oversupply. Bumper harvests and genetically modified crops had produced gluts, suppressing prices. But with drought conditions forecast to intensify in March, JPMorgan cut its soyabean and corn production estimates, raising the potential of more price volatility. Soya meal and soyabean futures contracts rose to their highest since the summer of 2016 on 2 March.