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Drought Strikes Corn Supply -- With Global Implications


A World Of Hurt

The worst drought in 25 years has decimated corn crops in the U.S. and set off a chain reaction that is being felt all over the world.

Corn supplies have hit a 17-year low, and soybeans are threatened. Prices for a third commodity -- wheat -- tend to mimic prices for corn. All are major crops for developing countries.

Support From The Feds

However, help is on the way from the federal government.

President Barack Obama authorized an additional $30 million of aid to crop and livestock producers after a drought meeting at the White House Tuesday. He also urged Congress to act on the 2012 farm bill.

Cool And Wet?

Although it's too late for this season's corn crops, soybeans may get a break.

Cooler temperatures and forecasts calling for rain might turn around some late-planted soybean crops -- but analysts are stopping short of calling it a "drought-buster."

Read More:

  • Obama announces $30M more in drought assistance (Washington Post)
  • U.S. crops get a break from historic drought (Reuters)
  • Drought seen slashing U.S. corn crop to five-year low (Reuters)
  • US Drought Affecting Global Food Security (Voice of America)

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