Posted on 02/25/2008 5:08:27 AM PST by TigerLikesRooster
America's grain stocks running short
By Robert Pore robert.pore@theindependent.com
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Global demand for grain and oilseeds is at record levels, causing the nation's grain stocks to reach critically low levels, according to Purdue University agricultural economist Chris Hurt.
With a weak U.S. dollar and global demand so high, foreign buyers are outbidding domestic buyers for American grain, Hurt said.
"Food consumers worldwide are going to have to pay more," Hurt said. "We ended 2007 with our monthly inflation rate on food nearly 5 percent higher. I think we'll see times in 2008 where the food inflation rate might be as much as 6 percent."
Increasing food costs will ignite the debate on food security this year, Hurt said.
"We'll have discussions about whether we should allow the foreign sector to buy our food," he said. "Is food a strategic item that we need to keep in our country?"
The USDA recently released a revised forecast for agricultural exports, predicting a record of $101 billion for fiscal year 2008.
According to the U.S. Grains Council, a significant increase in feed grain exports buoyed the forecasts. Specifically, the forecast for coarse grain exports is raised to 70 million tons, up 2 million tons since November. Corn and sorghum exports are up $2.4 billion from November. Coarse grain exports are forecast at $14.1 billion, $4.3 billion above last year's level.
Hurt said the 2007 U.S. wheat crop is virtually sold out, while domestic soybean stocks soon will fall below a 20-day supply. Corn inventories are stronger, but with demand from export markets, the livestock industry and ethanol plants, supplies also could be just as scarce for the 2008 crop.
More than 70 percent of Nebraska corn crop this year could go to ethanol production.
But what concerns Hurt the most is weather. Adverse weather could trim crop yields this year and cause crop prices to skyrocket even further.
Last year, Nebraska had a record corn crop of nearly 1.5 billion bushels. But rainfall was exceptional last year, especially during the growing season, which helped increase crop yields.
He said recent cash prices for wheat, soybeans and corn are up dramatically from two years ago. Wheat prices have been near $10 a bushel, more than $6 a bushel higher. Cash prices for soybeans are about $13 a bushel, up more than $7 a bushel. Corn is pricing at almost $5 a bushel, an increase of greater than $3 a bushel.
>>No one is gouging. Crop prices respond
>>quickly to the laws of supply and demand.
Gubmint mandated ethanol requirements have manipulated demand.
Get rid of ethanol mandates and let the market work.
Don't get me started.
The last tank full was purchased at $3.019/gal, the current tank cost $3.399/gal.
It was the cheapest I could find...
I paid $3.09 this morning. Last week it was $2.89.
I’m plotting out my garden as we speak. I’m adding 5,000 square feet to it this year.
Plant a bunch of Cobaifera trees...
Let them eat cake. Roger. Message understood.
>>Provide food and other necessities yourself.
I can do that. Millions of citizens who’ve been made dependent a system that manipulates and profits from the tyranny of their own appetite, can not.
>>If the system is flawed, work toward repairing it,
>>don’t bite the hand that feeds you.
{rolling eyes}
>>made dependent a system
=made dependent by/upon a system
More like a PINO.
That was in 1980. 1973 was about grain and oil prices.
IN a country where most adults are overweight, maybe higher food prices would be OK.
http://www.cdc.gov/nchs/fastats/overwt.htm
Carolyn
What happens, of course, is that you get MORE of the commodity, accumulating a surplus. That appears not to be the problem.
Should we do the same with the oil subsidies?
Our farm subsidies used to produce surpluses, which we often gave away as part of our aid programs. We also paid farmers not to put land into production. Times have changed, but we still have huge farm subsidies.
Not for a long period. Look at his signup date.
>>Rush has said that the most expensive commodity
>>traded in the United States is ignorance.
Lush Rimbaugh is nothing but a shill for the manufactured dialectic right. How’s he doing with his substance abuse problem?
>>They now have their wish, they’re gone,
Replaced by mandated Ethanol consumption.
Do I dare ask what that is????????
Lush Rimbaugh is nothing but a shill for the manufactured dialectic right. How’s he doing with his substance abuse problem?
LOL! He's doing just fine I'm sure.
Couldn't give a rational response to his wisdom could you?! Chuckle.
The people who understand economics and government programs didn't think food would get cheaper. Did you?
Implied in my post was the fact that if the Cheap Food Program for Consumers was going to be retired, it was going to take some outside force acting on the market to push crop prices up.
I apologize, I should have known it would need to be explained to you.
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