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Posted: 8/13/2002 11:29:47 AM EDT
[url]http://www.freerepublic.com/focus/news/732517/posts[/url] WASHINGTON (Reuters) - Brutal drought in the American Grain Belt, part of a downturn in crops worldwide, will bring the smallest U.S. corn and soybean harvest since the mid-1990s, the government said on Monday, whipping a price stampede that could run far into next year. U.S. crops might shrivel more without relief from a drought that gripped one-third of the nation. The Agriculture Department reported crop losses on every continent, ending a remarkable five-year run of large crops globally. Smaller crops would have no immediate effect on U.S. consumer food prices, now running a modest 2.4 percent higher than last year. But private consultant John Schnittker foresaw "market tension" for the next 18 months to find enough grain and oilseeds for food, livestock feed and industrial use. Foodmakers will pay more for grain for at least 15 months. "We absolutely have to have good crops in 2003. Any further reduction will send prices sharply higher," Schnittker said. The forecast sent Chicago corn and wheat futures contracts rocketing to five-year highs. Soybeans hit a four-year high.
Link Posted: 8/13/2002 11:48:25 AM EDT
I see this first hand, the crops just down the road from me, corn that should be 10 feet high, is runted at 6 foot, it is going to be a loss, first too much rain and then not enough. Some crops, beans are just making it, if they don't get a good rain, it will be a poor crop, The grain prices at the Chicago Board of Trade are inching up. This will be interesting, fellows the grain dictates the prices of a lot of other things, like milk, beef, and bread. Time and the weather will tell as it has for the past.
Link Posted: 8/13/2002 5:02:42 PM EDT
I'd just like to point out that those 4 and 5 year highs are only "high" because of the extremely low prices for the last 4 or 5 years. Did anyone notice bread or corn flakes hitting a low the last few years?
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