The US Department of Agriculture has cut yield estimates for the country’s maize harvest even further than was previously expected. As the effects of the drought affecting a range of areas in the United States, particularly the Mid-West, continue to be felt the USDA reduced estimates for maize, soy and wheat.  

Last week, the US government Drought Monitor revealed that this year’s drought has been more extensive than any other in the programme’s 12 year history. The drought conditions currently affecting the Mid-west are said to be the worst in 25 years.

On Wednesday, USDA officials announced reductions to estimates for the US maize crop; although farmers in the United States were hoping for a record crop of 186 bushels an acre, the USDA estimate shave 20 bushels an acre off these predictions. The revision is a blow for growers, but the crop is set to remain the United States’ third largest on record, in spite of the drought.

The revised estimates sparked a rally in the US grain markets; at the beginning of the month analysts from the UN Food and Agriculture Organisation warned that food prices may rise again on the effects of the US drought and consequential changes in the markets. The analysts warned the world’s poorest would feel these effects most acutely.

The maize harvest projection is currently 12.97 billion bushels for 2012/13; although the harvest is set to be the third largest on record, yields would be the lowest since 2003. Soybean yields were also cut by 8 per cent, although soybeans have more time to recover if the drought eases.   

Yield estimates of other growers, including China, Kazakhstan and Russia also saw reductions in the USDA’s report. Analysts have suggested that, if drought conditions persist, further cuts are likely when the USDA makes its harvest estimates next month.

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