Posted on 06/09/2021 5:33:55 PM PDT by blam
In the world of crops, angst over the weather has reached a fevered pitch.
Global inventories are shrinking and demand is on a tear as drought plagues farms in key producers from the U.S. and Brazil to Russia. As a result, every rain shower and dry spell is coming under extreme scrutiny. Grain prices have touched near-decade highs, and whether they rally to further heights or retreat depends in large part on the condition and quantity of plants over the next few months.
In the U.S., traders and investors usually focus their attention on giant corn and soybean growers like Iowa and Illinois. Now, they’re obsessing over droughts in second-tier producers like North Dakota and Minnesota. Dry weather has already inflicted damage on South America’s corn crop. Meanwhile, there’s no let up in demand as China scours the globe for all the grains it can find as it tries to modernize and feed its hog herd, the biggest in the world.
“Every bushel matters,” said Kevin McNew, chief economist at agriculture-tech firm Farmers Business Network, “even though we may be talking about drought in lesser growing corn and soybean areas like the Dakotas.”
Heightened anxiety over the weather comes as markets await the U.S.’s monthly world supply and demand report, known as WASDE, due for release Thursday. For corn, the agency is expected to trim forecasts for U.S. and global stockpiles as well as Brazilian output, according to a Bloomberg survey.
The report has already jolted the market once this year. With world crop inventories at risk of running short and food inflation worsening, corn futures leaped close to eight-year highs on March 31, when the U.S. shocked the market by not projecting as many planted acres for the new season as expected.
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(Excerpt) Read more at newsmax.com ...
First time since the Great Depression that the U.S. is facing significant food shortages.
The current heat wave in America’s midwest is not good. When temperatures are in the 90’s in North and South Dakota and Minnesota in early June that bodes poorly for the recently planted grain crops.
Yes, California and Nevada are in a drought, but also take a look at the temperatures in the Midwest.
Crop prices are high mainly because of Dakotas wheat and global demand and lower supply for corn and soybeans, not really a prediction of drought here.
A farmer friend is not able to plant 9,000 acres of the 30,000 total in produce. Another reason for coming inflation...
California
10 years or so ago Texas and the South was having a huge drought. I remember my sister in Oklahoma had to have her house foundation fixed because the drying out actually cracked it.
Now there is no drought from Texas to the coast of Georgia, and up through Tennessee, Kentucky and Ohio.
Farmers in those locations are having a good year. Here in Alabama my neighbors usually plant cotton but switched to corn and peanuts because the prices are going up. They’re quite happy to help the other parts of the USA make food.
A few years ago Texas had a severe drought and it was bad It was about three years and lakes and rivers were at ebb. The climate Nazis said this was due to global warming. The next year we had incredible rains and flooding and the lakes and rivers were full. The climate Nazis said this is due to global warming.
20,000 years ago was 10,000 feet of ice over Albany, New York. This happened many times with several glacial periods. The global warming alarmists can not explain this and they sure as can not explain the weather next week nor 100 years from now. They are simply left wing political charlatans pretending to be scientists. They are not.
They have a political agenda and not science.
We could stop the 10% ethanol gasoline mandate.
“...the U.S. is facing significant food shortages.”
Are they real shortages, or the effects of government meddling?
I don’t have the energy to comment completely or with any seriousness. This is a contrived panic driven by chasing dollars. There is no reason for this kind of panic and yellow press.
Just like m, everybody gets a bully pulpit to scream fire from without any vetting / credentials or validity being proven.
Just about nothing is believable any more.
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