Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (34629)	5/10/2008 1:06:00 PM
From: elmatador	Read Replies (1) \| Respond to of 217927

Grain production to reach record levels as farmers respond to high prices and strong demand Grain production to reach record levels By Chris Flood Published: May 9 2008 21:15 \| Last updated: May 9 2008 21:15 Global production of wheat and rice will reach record levels this year as farmers respond to high prices and strong demand, according to the US Department of Agriculture, which on Friday published its first forecasts for US and global agricultural output and stocks in 2008-9. The world will produce a record 656m tonnes of wheat in the year starting in July, up 8.2 per cent on the previous year, but this may not be enough to restore a comfortable supply buffer to the world market. Global wheat stocks have shrunk to their lowest level since 1978 and a limited recovery is forecast this year, with inventories expected to rise 13 per cent to 124m tonnes. EDITOR’S CHOICE Indonesia warns of unrest as food prices rise - Feb-27Editorial Comment: Biofuels will not feed the hungry - Feb-25High food prices may force aid rationing - Feb-24Wheat prices in biggest one-day rise - Feb-25MF Global takes $141m hit trading wheat - Feb-28MF Global counts the costs - Feb-29“The USDA increased world wheat production more than most people expected, and yet inventories are still tight,’’ said Jerry Gidel, analyst at North American Risk Management Services. US farmers are expected to produce the largest wheat harvest for a decade this year with production expected to rise 15.7 per cent to 2.392bn bushels in 2008-9. CBOT May wheat fell 29 cents to $7.80 a bushel on Friday, close to its lowest level for six months. Abah Ofon of Standard Chartered said: “The improvement in global wheat supplies is encouraging and this should in turn allow some rice-exporting countries to lift the recent supply restrictions which have been imposed. This would allow rice exports to rise and prices should start to ease” A big surprise from the report was the projection that global soyabean stocks would decline and US inventories only recover slightly in spite of a rise of more than a fifth to 3.105bn bushels in US production in 2008-9. CBOT May soyabeans rose 33¾ cents to $13.32 a bushel after the USDA said global stocks would decline by 22.2 per cent to 49.04m tonnes. “In spite of a large increase in US land devoted to soyabean production, we appear unable to build stocks because global demand is rising even faster,” said Gavin Maguire of Iowa Grain. Corn prices surged to record levels in Chicago after the USDA forecast a rapid decline in corn stocks by the end of 2008-9, down 44.8 per cent to 763bn bushels, the lowest since 1996. Corn output is expected to fall 7.3 per cent this year while demand for ethanol use is expected to rise by one-third to 4bn bushels next year. Ethanol will eat up 33 per cent of next year’s US corn harvest, up from 22.9 per cent in 2007-8. Lewis Hagedorn, of JPMorgan in Chicago, said: “The trajectory of all agricultural markets towards lower inventories and increased dependence upon optimal production outcomes suggest that price risk for the coming year will remain decisively to the upside.”