Saturday, January 12, 2013

WSJ: "Forecast is Grist for Grains: Corn, Wheat Futures Jump as USDA Projects Supplies Will Dwindle by Summer"

by L. Pleven and O. Fletcher p. B6 Sat/Sun Jan 12-13 2013 p. B6.

"The USDA forecast Friday that domestic corn stockpiles will total 602 million bushels at the end of August, the lowest for that time of year since 1996. At the current pace of consumption, the US would burn through that much corn in less than 20 days"

Majia here: Last year's poor corn crop is cited as the reason for such low supplies: "The fresh evidence of tight supplies highlights the ongoing consequences of last summer's drought..."

The US apparently produces nearly 1/3 the world's corn and soybeans so one hopes that this summer's harvest will be high.

Supplies of wheat are also expected to remain tight. Farmers planted fewer acres of wheat in the fall of 2012. The WSJ article cites "persistent dryness" as the reason.

Hopefully last summer's yields will be bested this year.

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