The spectre of inflation hit agricultural markets after the US government slashed key crop forecasts and warned of shortfalls in key grains.
The US Department of Agriculture on Tuesday cut estimates of US corn yields for a third straight month, forecast record soyabean exports to China and warned of the slimmest cotton stocks since 1925.
“The combined production shortfalls and dramatic potential stock drawdowns mean a much tighter supply picture than just a few months ago,” the agency said in a separate grains report.
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