US harvest largest crop on record

IN its August crop report the USDA forecast that US farmers will harvest the largest maize and soyabean crops ever, while the US cotton crop will be the second highest on record.

Following early planting and favourable growing conditions, the 2000 soyabean output estimate was increased by over 1m tonnes to 81.34m tonnes.

Although the crop adjustment was expected, it has raised concern about a further decline in prices. With US analysts forecasting the lowest ex-farm prices in the last 3 decades, some sort of farm subsidy is likely to continue.

The US government has given special aid of some $22bn to growers since 1998.