Corn

For 2006-07, the US Dept of Agriculture is estimating corn production at 10.8 billion bushels. This assumes normal yields without any real weather problems. Projected usage is 11.5 billion bushels. Next years crop will further lower remaining surplus supplies. The US Supply is headed lower.

For the past decade, Chinese meat consumption has increased by nearly 100 percent, about 10% annually. Last week China announced it is going to halt exports of corn sometime at the end of this month. due to high domestic prices. For the past six years China has produced less corn than it uses. Above ground supplies are at 30 year lows. China is the second-largest corn exporter in the world and the largest in Asia. For example South Korea routinely buys 5 million metric tons from China (but they just started switching to US corn).

Corn will also be used in ethanol production.

The future continues to get more and more interesting...so many people competing for resources....now corn will be an interesting subject next year!