Thursday, July 12, 2012

U.S. corn production predicted to decline due to drought

 Severe drought conditions in the U.S. Midwest will result in much reduced yields. The U.S. Department of Agriculture now predicts that the crop will average only 146 bushels per acre. This is 20 bushels per acre lower than the June estimate.
   Corn contracts on the Chicago Board of  Trade saw and upward trend. December contracts rose by 23 cents to $7.40 a bushel. The drought has also lowered expectations for wheat and soybean yields.
   Earlier a mild and early planting of corn led to hopes of  a record corn crop. The drought changed the prospects dramatically. The USDA has also cut its forecast for the wheat crop in Russia by 4 million tonnes and in Kazakhstan by 2 million tons due to hot weather and drought in growing areas in those countries. For more see this article.
 

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US will bank Tik Tok unless it sells off its US operations

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