One of the worst droughts in 30 years has damaged U.S. corn crops and keeps lifting prices higher.
Agricultural focused exchange-traded products or ETPs like the Teucrium Corn (NYSEArca: CORN) have soared 43.14% over the past three months. The Teucrium Soybean (NYSEArca: SOYB) is ahead by 12.17%, while the broader agricultural basket (NYSEArca: TAGS) is up by 19.03% over the same time frame.
The U.S. Department of Agriculture (USDA) has cut its forecast for corn production to a total of 10.779 billion bushels of corn, which is around 40% less than its spring forecast of 14.8 billion bushels. The USDA's outlook now expects a yield of just 123.4 bushels per acre, push production to a 17-year low.
The shrinking crop has pushed corn prices to record highs. It's also created food supply disruptions for the livestock industry, food makers and ethanol producers (NYSEArca: XLE).
