Agriculture's role in China's War

The planting season for corn is just about closed.  As of June 2, this is what the crop looked like for the eight largest corn-producing states with production for the 2016 crop year: Those eight states account for 74% of U.S. corn production.  Based on the percentage planted, production will be down by about 26%, assuming that crop quality remains the same.  Estimates from farmers are that the crop will be down by about 30%.  Soybeans are similarly affected. A 26% reduction equates to about 4,000 millions of bushels.  Carryover stocks from the 2018 year were 1,781 millions of bushels, and projected use in ethanol production is 5,600 millions of bushels, so there is plenty of buffer that could be used to stop a dramatic flow through to food prices.  There will be no buffer at the end of the year, though, if the 2020 season is also weather-affected. One country that will be following crop reports from the Midwest...(Read Full Post)
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