Corn rallies to two-year high after crop forecast

[Roland99]

Source: MarketWatch

Corn and other grains futures shot up Friday after a U.S. Department of Agriculture report pointed to the tightest supply and demand balance for corn in fourteen years.

The USDA on Friday forecast a 2010-2011 corn crop 3.8% smaller than government expectations just a month ago, as a hot Midwest summer preceded by floods in June takes its toll.

...

Following flooding in June, the Corn Belt suffered from a hot summer and, more importantly, warmer-than-usual nights that interfered with corn’s ability to pollinate as it normally would, he said.

The rally in corn, widely used as feed and biofuel, also pushed up prices for soybeans and wheat and drove up shares of fertilizer and agricultural-equipment companies. Livestock producer shares fell.

Read more: http://www.marketwatch.com/story/corn-at-two-year-high-after-crop-forecast-cut-2010-10-08

[DJ13]

1. Nope, theres no inflation

None at all....

[bherrera]

4. Inflation in the USA is minimal, and corn prices should go up

This way the subsidies the USA tax payer gives the corn growers can be reduced, or eliminated.

[KurtNYC]

9. but this increase was created by crop failures in the USA

not in russia or canada.

[Lucky Luciano]

6. supply based inflation cannot be controlled through monetary policy..

which is why food/energy are often subtracted from CPI to calculate core inflation.

[backtomn]

8. Try removing ethanol subsidies

Spending money on a so-called "green" energy that uses as much energy as it produces affects government spending, food costs, energy costs, and more. The government is sending millions of dollars to ag conglomerates, to no advantage to the consumer. Enough.

[NickB79]

2. FWIW, warmer nights are a long-predicted effect of global warming. NT

[no_hypocrisy]

3. GM corn . . . .

:banghead:

[SpiralHawk]

5. That's something to think about

[TexasObserver]

7. Good news in farm country is good news for Democrats.