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, soyabean cut its JPMorgan and corn production estimates, raising the potential of more price volatility. Soya meal and JPMorgan 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.