Corn stockpiles in the U.S., the world’s largest grower, are plunging to a 15-year low and may be smaller than the government forecast last month as rising demand from makers of feed and ethanol drive prices higher.
Stockpiles on Sept. 1, before the harvest, will drop 66 percent from a year earlier to 589 million bushels, a Bloomberg survey of 30 analysts showed. That’s 13 percent less than a March 10 estimate by the U.S. Department of Agriculture, which will update its forecast today. Tightening supply led Goldman Sachs Group Inc. to raise its corn-price forecast last week.
About 40 percent of the crop is used to make ethanol as the government subsidizes the fuel additive and retail gasoline nears $4 a gallon. Corn futures have more than doubled in the past year to the highest since July 2008, as rising pork and beef prices encouraged demand from livestock producers and as U.S. export-sales expanded at the fastest pace in three years.
Read more:
http://www.businessweek.com/news/2011-04-08/corn-stockpiles-dropping-in-u-s-as-meat-ethanol-demand-widens.html
ANOTHER ARTICLE THAT WARNS OF IMPENDING FOOD CRISIS...
Winter wheat in US states under grip of drought
US winter wheat seedlings are threatened by drought and are facing the worst situation since 2002. The US Department of Agriculture or USDA in its first assessment of domestic wheat crops pegged only 37% being in excellent condition according to agrimoney.com.
In Illinois 55% of crop was deemed under excellent condition when compared with 31% in Kansas where hard red winter wheat is grown which is used mainly in bread cakes and biscuits. Soft red winter wheat is grown in Illinois which has received ample moisture. Among the Texan crop only 12% was in excellent condition.
Link:
http://www.indiainfoline.com/Markets/News/Winter-wheat-in-US-states-under-grip-of-drought/5124934122
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