david dissadent
New Member
US stocks lowest for 55 years according to this article in CNN.
http://money.cnn.com/2007/10/12/news/economy/bc.apfn.cropreport.ap/index.htm?section=money_news_economy
While the international grain council warns of a halt on exports.
This however is not a new problem but one that has been noted over time as this article last year documents falling stocks
The trend is also documented in this graph for the USDA
Compaired with production figures.
So the fall in stocks appears to be due to increase in demand rather than drought. This increase in demand has three sources, increase demand for feed for animals as an increasingly wealthy China eats more meat, the huge increase in demand for corn for biofuel in the states jacking up the price of corn to a point that normal corn consumers such as pig farmers are now having to switch to grain and increase in international wealth meaning more people want to eat more food.
Food inflation is causing political problems in China and destabalising other regimes around the world. Burma started off about fuel but as the world moves from worrying about the price of petrol to grain political instability is likely to increase dramaticaly.
http://money.cnn.com/2007/10/12/news/economy/bc.apfn.cropreport.ap/index.htm?section=money_news_economy
While the international grain council warns of a halt on exports.
This however is not a new problem but one that has been noted over time as this article last year documents falling stocks
The trend is also documented in this graph for the USDA
Compaired with production figures.
So the fall in stocks appears to be due to increase in demand rather than drought. This increase in demand has three sources, increase demand for feed for animals as an increasingly wealthy China eats more meat, the huge increase in demand for corn for biofuel in the states jacking up the price of corn to a point that normal corn consumers such as pig farmers are now having to switch to grain and increase in international wealth meaning more people want to eat more food.
Food inflation is causing political problems in China and destabalising other regimes around the world. Burma started off about fuel but as the world moves from worrying about the price of petrol to grain political instability is likely to increase dramaticaly.



