World Grain Stocks Fall to 57 Days of Consumption:

4dsc

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Mon Jun-19-06 10:15 AM
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World Grain Stocks Fall to 57 Days of Consumption:

http://energybulletin.net/17261.html

Let use more food supplies for biofuels!! (NOT) Coupled with a drought in the corn and soybean belt, I wonder what supplies will look like next year.. I see corn is already $2.45 a bushel do to ethanol demands and is expected to rise to about $2.70/bushel by fall.

This year’s world grain harvest is projected to fall short of consumption by 61 million tons, marking the sixth time in the last seven years that production has failed to satisfy demand. As a result of these shortfalls, world carryover stocks at the end of this crop year are projected to drop to 57 days of consumption, the shortest buffer since the 56-day-low in 1972 that triggered a doubling of grain prices.

World carryover stocks of grain, the amount in the bin when the next harvest begins, are the most basic measure of food security. Whenever stocks drop below 60 days of consumption, prices begin to rise. It thus came as no surprise when the U.S. Department of Agriculture (USDA) projected in its June 9 world crop report that this year’s wheat prices will be up by 14 percent and corn prices up by 22 percent over last year’s.

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leveymg

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Mon Jun-19-06 10:20 AM
Response to Original message

1. I remember when a loaf of bread hit a dollar in 1972 and everyone was

shocked. There was another big runup in food prices in 1979. Are we ready for $5 gas and $5 bread?

That'll get peoples attention, even if nothing else has.

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phantom power

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Mon Jun-19-06 02:31 PM
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2. Meanwhile...

The Chimp in Chief and Congress are busy making the country safe from the existential threat of gay marriage. I wonder if any of them are even aware this is going on.

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hatrack

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Mon Jun-19-06 02:43 PM
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3. Very interesting

Thanks for the post!

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Solo_in_MD

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Mon Jun-19-06 04:18 PM
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4. What is not said is where the shortfall are occurying

Which regions and areas are not producing at the same levels and why. That is key information. An obivious area of interest would be southern Africa

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amandabeech

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Mon Jun-19-06 06:00 PM
Response to Reply #4

5. The Great Plains and some parts of the western Midwest

are very, very dry. Hatrack posted an article here describing a disastrous wheat harvest in Kansas. Very little corn acreage is irrigated, and crops in the western corn belt may be short as well.

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