Core Insights - The latest USDA drought report indicates that various major agricultural regions in the U.S. are experiencing drought conditions ranging from moderate (D1) to extreme (D3) as of July 15, 2025, significantly impacting grain, cash crops, and livestock [1] Grain Sector - Durum Wheat: 41% of the production area is under drought conditions, unchanged from the previous week, but up 35 percentage points year-on-year [3] - Spring Wheat: 36% of the production area is under drought conditions, an increase of 1 percentage point from the previous week and up 28 percentage points year-on-year [4] - Winter Wheat: 30% of the production area is under drought conditions, an increase of 4 percentage points from the previous week and up 6 percentage points year-on-year [5] - Corn: 9% of the production area is under drought conditions, a decrease of 3 percentage points from the previous week but up 4 percentage points year-on-year [6] - Soybeans: 7% of the production area is under drought conditions, a decrease of 2 percentage points from the previous week but up 2 percentage points year-on-year [7] - Barley: 59% of the production area is under drought conditions, unchanged from the previous week but up 33 percentage points year-on-year [8] - Sorghum: 7% of the production area is under drought conditions, unchanged from the previous week but down 14 percentage points year-on-year [9] - Rice: 1% of the production area is affected by drought, unchanged from the previous week and the same as last year [10] Cash Crop Sector - Cotton: 3% of the production area is under drought conditions, unchanged from the previous week but down 16 percentage points year-on-year [11] - Peanuts: 1% of the production area is under drought conditions, unchanged from the previous week and down 14 percentage points year-on-year [12] - Sunflowers: 8% of the production area is under drought conditions, unchanged from the previous week and up 5 percentage points year-on-year [13] - Sugarbeets: 39% of the production area is under drought conditions, unchanged from the previous week and up 36 percentage points year-on-year [14] - Sugarcane: 30% of the production area is under drought conditions, unchanged from the previous week and up 30 percentage points year-on-year [15] Livestock Sector - Hay: 18% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week but up 2 percentage points year-on-year [16] - Alfalfa Hay: 30% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week and up 13 percentage points year-on-year [17] - Cattle: 15% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week and unchanged year-on-year [18] - Sheep: 29% of the production area is under drought conditions, unchanged from the previous week and up 9 percentage points year-on-year [18] - Milk Cows: 22% of the production area is under drought conditions, an increase of 1 percentage point from the previous week and up 10 percentage points year-on-year [19] - Hogs: 4% of the production area is under drought conditions, a decrease of 2 percentage points from the previous week and down 3 percentage points year-on-year [19]

Group 1 - Bolivia is experiencing a severe fuel shortage due to insufficient domestic energy reserves and limited fuel imports, significantly impacting agricultural harvests and sales [1][7] - In the economic center of Santa Cruz, fuel shortages have persisted for five weeks, affecting farmers' ability to operate machinery for harvesting crops like sunflowers and chia seeds [3][5] - The decline in natural gas exports has led to rising expenditures on imported fuel, with foreign exchange reserves only covering six weeks of import needs [7] Group 2 - Long queues at gas stations across Bolivia have resulted in protests, with demonstrators blocking key city access points, further exacerbating the fuel shortage and disrupting food and fuel transportation [7] - The agricultural sector is incurring significant losses due to road blockades caused by protests, with daily losses estimated at $610,000 (approximately 4.38 million RMB) [7] - Bolivia's inflation rate reached 5.9% in the first four months of 2025, with essential food items like onions and tomatoes seeing price increases of around 90%, severely affecting the purchasing power of low-income households [9]

Core Viewpoint - The surge in potato prices in Russia, which have tripled since last year, is exacerbating inflation and worsening the living conditions of the impoverished population [1][3][4] Group 1: Inflation and Economic Impact - In Russia, food accounts for approximately 40% of the inflation basket, significantly higher than the 14% in developed economies like the US [1] - The Central Bank of Russia lowered the benchmark interest rate to 20% on June 6, 2023, which is still near the highest level since 2003 [2] - Despite a slowdown in actual inflation, public inflation expectations remain high, contributing to ongoing price pressures [2] Group 2: Price Increases and Consumer Behavior - The price of potatoes has risen to 120 rubles (approximately $1.53) per kilogram for new season potatoes, compared to just 43 rubles last year [4] - In April, nearly 35% of Russian households' income was spent on food, the highest level in five years, up from 29% the previous year [4] - The rising prices of basic food items like onions, cabbage, and carrots are also contributing to the overall food inflation crisis [4] Group 3: Government Response and Agricultural Challenges - The Russian government is increasing imports, with potato supplies from Egypt tripling, while Belarus has reported depleted stocks [4] - Farmers attribute last year's potato yield drop to adverse weather conditions and rising costs for machinery, fuel, fertilizers, and labor [5] - The Agriculture Minister predicts that prices will stabilize starting in July 2023, following a better harvest [6] Group 4: Socioeconomic Disparities - The inflation rate for the impoverished population, based on essential goods, exceeds 20%, which is 10 percentage points higher than the official inflation rate [6] - Over a quarter of the population are pensioners, with an average pension of 23,448 rubles (approximately $298), which has seen minimal real growth since 2025 [7] - Low-income groups, particularly pensioners and public sector workers, are disproportionately affected by inflation [7]