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US cuts corn, soybean outlook as drought burns on
Published in Saudi Press Agency on 10 - 08 - 2012

U.S. corn growers could have their worst crop in a generation as the harshest drought in decades takes its toll, the government reported Friday as it forecast the lowest average yield in 17 years, dpa reported.
The U.S. is the world's biggest producer of corn, soybeans and wheat, and the United Nations has warned of higher global food prices as the dry spell withers farms across the Midwest.
The director-general of the U.N.'s Food and Agricultural Organization has asked the U.S. for an "immediate, temporary" suspension of its putting aside 40 percent of the corn drop for biofuel.
Agriculture Secretary Tom Vilsack, in a statement supplied exclusively to The Associated Press, insisted Friday that U.S. farmers and ranchers remain resilient and that the country would continue to meet demand.
"Americans shouldn't see immediate increases in food prices due to the drought," Vilsack said as he visited drought-stricken Nebraska.
The Agriculture Department slashed the U.S. projected corn production to 10.8 billion bushels, the lowest production since 2006. That's down 17 percent from its forecast last month of close to 13 billion bushels.
Soybean production was forecast at 2.69 billion bushels, a 12 percent decline from last year.
Friday's revised outlook comes months after corn farmers expected this to be a record year when they planted, sowing the most acres since 1937.
-- SPA


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