American Drought Boosts Brazilian Agriculture Exports

A recent shift in the purchasing practices of meat producers in the U.S. illustrates the power of the weather, and the extent of its impact on the cost of what we eat. According to an article in the WSJ, Smithfield Foods, Inc. (NYSE:SFD), which is the largest pork producer in the world, has had to resort to buying corn from Brazil, as domestic corn prices shoot through the roof due to the worst drought seen in the U.S. in decades. The difference between corn prices prevailing at a Brazilian port and in the U.S. Gulf of Mexico has never been higher…