The U.S. is the world's biggest producer and exporter of corn and soybeans, and exports more wheat than any other nation.
Bloomberg.com: Worldwide: "Jan. 11 (Bloomberg) -- Soybeans jumped to a record, corn reached an 11-year high and wheat rallied after U.S. government reports showed that production is failing to keep pace with rising global demand for food and biofuels.
The world soybean harvest will fall 6.5 percent this year, U.S. corn inventories will be 20 percent less than estimated a month ago, and wheat farmers in Kansas and Texas planted less even as the price of the grain doubled, the Department of Agriculture said in separate reports today.
Tighter supplies will boost the cost of feed for hog processor Smithfield Foods Inc. and poultry producer Pilgrim's Pride Corp. General Mills Inc., the second-biggest U.S. cereal- maker, said today it raised the price of Pillsbury refrigerated dough to offset higher wheat costs. Globally, food prices have doubled on average in the past five years, UN data show.
"We can't grow our way out of this grain-shortage hole,'' said Jim Gerlach, president of A/C Trading Inc. in Fowler, Indiana. "We'll have to price our way out. I'm bullish until further notice. We'll see ups and downs, but the trend will remain higher.''
Bloomberg.com: Worldwide: "Jan. 11 (Bloomberg) -- Soybeans jumped to a record, corn reached an 11-year high and wheat rallied after U.S. government reports showed that production is failing to keep pace with rising global demand for food and biofuels.
The world soybean harvest will fall 6.5 percent this year, U.S. corn inventories will be 20 percent less than estimated a month ago, and wheat farmers in Kansas and Texas planted less even as the price of the grain doubled, the Department of Agriculture said in separate reports today.
Tighter supplies will boost the cost of feed for hog processor Smithfield Foods Inc. and poultry producer Pilgrim's Pride Corp. General Mills Inc., the second-biggest U.S. cereal- maker, said today it raised the price of Pillsbury refrigerated dough to offset higher wheat costs. Globally, food prices have doubled on average in the past five years, UN data show.
"We can't grow our way out of this grain-shortage hole,'' said Jim Gerlach, president of A/C Trading Inc. in Fowler, Indiana. "We'll have to price our way out. I'm bullish until further notice. We'll see ups and downs, but the trend will remain higher.''
No comments:
Post a Comment