With apologies to Meredith Willson, who wrote a fabulous Christmas song…”It’s beginning to sound a lot like Jimmy Carter! What a terrible time we live!!!”. Inquiring minds are wondering if President Obama really has morphed into Jimmy Carter…bad luck and all.
The agricultural yeilds are looking worse and worse. Over at FT.com’s “Now the Fed warns of falling US corn yields“:
The agriculture department on Tuesday cut estimates of US corn yields for a third successive month, forecast record soyabean exports to China and warned of the slimmest cotton stocks since 1925.
“The combined production shortfalls and dramatic potential stock drawdowns mean a much tighter supply picture than just a few months ago,” the agency said in a separate grains report.
Benchmark Chicago corn futures soared above $6 a bushel for the first time since August 2008, before ending lower. Soyabeans rose 4.3 per cent and New York cotton futures posted a record above $1.51 a pound. The price rises have revived fears of a repeat of the global food crisis of 2007-08.
Farmers will benefit from the higher prices but the consumer will suffer, of course. The brewer, Carlsberg, on Tuesday warned of price increases as costs swelled for malt and barley. Northern hemisphere farmers are contemplating next year’s crop plans since surging prices could generate a so-called ‘battle for acreage’ among different crops.
Please read the rest of the article to really see for yourself what is happening.
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