In the meantime China is gobbling up our extra food. http://www.washingtonpost.com/world/asia_pacific/us-exports-to-china-boom-despite-trade-tensions/2012/03/01/gIQAB2Rs5R_story.html
The last time The United States had a drought like this we were still a great country, the invasion was only beginning, jobs paid living wages, we weren’t burdened by a huge young population of foreign nationals who breed non-stop like rabbits. California, the bread basket of the US is going down due to mexicans and their babies.
So what lies ahead? Letting our Congress and the President know that illegals commit crimes, drive drunk, use food stamps did absolutely no good, Will food and water hunger wake up Congress, or will it just be another way to control what is left of US citizens?
Drought In U.S. Midwest Wilting Crops, Lowering Estimates For This Year’s Production
This year’s searing heat and lack of rain in the U.S. Midwest is taking its toll on the grain crop there and reigniting worries about food supplies if some sort of weather relief does not come soon.
Temperatures of over 100 Fahrenheit (about 38 Celsius) hit the U.S. Midwest and Plains states in June and into July and combined with no significant rainfall to offset the heat, crops are withering in the heat.
Grain prices have rallied sharply since mid-June, with corn prices at the Chicago Board of Trade rising 47%. From the start of the rally on June 15, when the most-active December contract corn settled at $5.06 a bushel, prices reached as high as $7.46 intraday Wednesday and are trading around $7.2450 as of 11:52 a.m. EDT. The all-time high is just shy of $8.
Soybean prices tell a similar tale, having risen 25% from a June 1 low for the most-active November contract $12.5650 a bushel to an intraday high of $15.74. November soybeans are currently trading around $15.52. The thinly traded July contract set an all-time record high of $16.75 in Wednesday’s session. Wheat prices, which are on a different growing schedule than corn and soybeans but are still affected by those crops’ price movements, have risen 32.5% from a June 15 low of $6.2675 a bushel to Wednesday’s high of $8.31, just under the high for the move set on July 5 at $8.46.
National crop condition ratings, as estimated by an agency of the U.S. Department of Agriculture, have fallen, with corn and soybeans both rated in good-to-excellent condition at 40% — meaning that 60% of crops are rated in very poor, poor and fair condition. These are some of the lowest health ratings for field crops since 1988, the last time the U.S. experienced a widespread drought.
Just how much of a toll the heat and drought have had on the crops was seen Wednesday when USDA released its July crop production and world agriculture supply and demand estimates. USDA slashed its estimate of U.S. national corn yield by 12% from last month’s report, dropping it to 146 bushels per acre and cutting 1.8 billion bushels of production to bring the total output estimate to 12.97 billion.
“Persistent and extreme June dryness across the central and eastern Corn Belt and extreme late June and early July heat from the central Plains to the Ohio River Valley have substantially lowered yield prospects across most of the major growing regions,” USDA said in its report.
Because of the lower supply, the government reduced its usage estimate for exports, food, seed and ethanol. Despite the big drops in supply, this year’s crop so far is still expected to be larger than last year’s production.
The national soybean yield was lowered 7.7% to 40.5 bushels an acre because of the adverse weather. Production was reduced by 155 million bushels to 3.05 billion, in line with last year’s output.
It’s unusual for USDA to make changes to the July report because this report is essentially mathematical calculations, rather than a survey of farmers, which begins in August. But this is not a normal year, industry sources said, given the hot weather and market talk about wilting crops, USDA officials were likely taking that into account.