Analyst: Possible Corn Rationing in 2008

[RobRich]

Despite skyrocketing corn prices, an industry report indicates domestic corn production will be down for 2008, thus fueling concerns of domestic corn rationing unless international growers can meet our increasing demand.

According to the March Prospective Plantings Report, farmers intend to plant about 86 million acres of corn this year, down 8 percent from 2007, when the amount of corn planted was the highest since World War II.

Analyst Heather L. Jones said in a note to investors if the USDA estimate proves accurate, the year may produce just 200 million bushels of corn. That, she said, wouldn't be enough to meet demand, given current export and feed demand trends and higher ethanol demand. Both ethanol and animal feed are made with corn.

Source: Houston Chronicle (Associated Press)

[Chuckiechan]

We should add a "differential tariff" on corn to equalize the Chines Yuan and the dollar. If we can throttle down their economy, the price of oil will fall.

[the mitch]

I say dump the ethanol (Why use food for fuel?), get the new Nuclear Power plants out and running, then either use the electricity for battery powered cars or hydrogen production.

[outlaw2001it]

Originally Posted by Chuckiechan

We should add a "differential tariff" on corn to equalize the Chines Yuan and the dollar. If we can throttle down their economy, the price of oil will fall.

The Chinese economy is already throttling down. Their inflation is, up, and they are in a world of hurt also (not as bad as the U.S.). What's going to happen is that people in countries where they depend on corn for eating are going to suffer.

[Gomer]

Originally Posted by the mitch

I say dump the ethanol (Why use food for fuel?), get the new Nuclear Power plants out and running, then either use the electricity for battery powered cars or hydrogen production.

hydrogen production is a bigger mistake than ethanol... IMO

[Shipuuden]

Originally Posted by the mitch

I say dump the ethanol (Why use food for fuel?),

I have to agree.

[sharder8]

Originally Posted by the mitch

I say dump the ethanol (Why use food for fuel?), get the new Nuclear Power plants out and running, then either use the electricity for battery powered cars or hydrogen production.

If everything was pushed through . . . we might see the next nuclear power plant on line in under 10 years . . . I wouldn't be very sure of the safety of it though.

So what do we do in the mean time mitch???

Originally Posted by Gomer

hydrogen production is a bigger mistake than ethanol... IMO

Do you have any better ideas Gomer???? How about environmentally based??? I'm sure the country would like to know.

Harder

[Shipuuden]

IMO wind and solar energy expansion would be good.

[Chuckiechan]

I find it hard to believe farmers will put off production for corn when futures prices fortell high prices. Record high prices = farmers switching away from it to grow lower priced crops? I think not. If you can grow corn, you will.

I think it's B.S. to throw speculators off the scent.

There is something hokey about this whole scenario. The only rationing will be through price.

If everything was pushed through . . . we might see the next nuclear power plant on line in under 10 years . . . I wouldn't be very sure of the safety of it though.

We can license a French design. It will be a win - win, since the big cost is labor. The building materials can also be obtained domestically. All we need is their experience. The only problem is it will be tied up in court for centuries. The liberals don't want nuclear, and they have the lawyers to prove it.

They should not be allowed to sue until after it is built.

[Toadman]

Corn is a nutrient-hungry crop. Farmers are looking to revert to a soybean/wheat or less intrusive crop for a season to return soil to a fertile state.