Crop Protection South America Monthly Report

In the past two months, the US has suffered the worst drought in more than 50 years, negatively affecting its production of corn and soybean and causing the price of these crops to increase fast. Meanwhile, corn and soybean production in South America has also been reduced by a severe drought. As a result, global supply of corn and soybean becomes tighter.

According to National Oceanic and Atmospheric Administration (NOAA) on Aug. 15, the EI Nino phenomenon will appear in the next two months. The appearance of EI Nino phenomenon will bring plenty of rain, which will be favorable for the growth of corn and soybean in South America. Therefore, the production of crops in this region is expected to increase in 2012/13, which will help ease the global food shortage.