US drought to reduce corn, soybean yields

16 July 2012 18:10  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--The severity of the drought in top corn producing states such as Illinois and Indiana is certain to reduce yields of corn and soybeans and push crop prices higher, sources said on Monday.

The effects the drought on crops in many US midwestern states was the major topic of discussion at the annual Southwestern Fertilizer Conference (SWC).

More than 1,300 fertilizer industry professionals registered for this year's SWC.

Opinions of the effects of the drought on fertilizer sales vary widely.

Some market participants said that higher crop prices will spur more fertilizer buying this autumn as farmers will want to maximize the production potential of next year's crop.

Others said that levels of fertilizer sales in coming months would remain steady from a year earlier, but the product mix would likely change for autumn applications.

Some market participants said demand for urea could increase while demand for ammonia decreases because some farmers will not want to apply ammonia to dry soils this autumn.

By: Frank Zaworski
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