24 Jul 2012

Soy bean futures and corn prices on rise

7:42 am on 24 July 2012

Soy bean futures have surged to record highs in Chicago due to the continuing drought in the United States.

Corn prices are spiking too, rising by half in the past five weeks.

The Secretary of Agriculture says nearly 80% of the country's soy bean and corn crops are in the areas affected by drought.

The level of the Mississippi River is close to record low levels.

Consumers won't be affected by the financial effects of the drought just yet.

The first to feel the pinch will be livestock farmers who use corn as animal feed.

Iowa Governor Terry Branstad says it's a critical situation but not a crisis, and markets are overreacting.

He says options include drought-resistant seed and opening up land for grazing and haying.

Iowa is America's largest state producer of corn and soy bean.