Back in 2008 people thought the idea of foot riots in the US was fantasy. CLICK LINK HERE.
Yet here in 2011 is Frank W. James assessment of the current crop outlook. Any bets on the outcome?
Well now, with this rain, the country is going to have great difficulty reaching the 87 million acre figure for 2011 corn production. If our planted corn acres fall below the 87 mil figure significantly AND we have a weather scare in July or August, look for corn on the Board of Trade to go through the roof. How far? Some analysts are already talking over $8/bu. corn.
One thing $8 corn will do for sure and that is eliminate the ethanol debate. Even with the present 46 cent per gal. subsidy (which goes to 42 cents at the end of this year) ethanol from corn is dead at $8/bu.
But then so is most of the livestock feed market.