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 the government is now trying to stem a further rise in food prices, which are expected to reach $US1 billion ($A1.27 billion) this year, according to official figures. Soya meal and soyabean futures contracts rose to their highest since the summer of 2016 on 2 March.
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.