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cropsey, il 61731 | I don't think it's a secret that high price grain has folks planting corn and beans in about every nook and cranny throughout the world (maybe even window planters). It's likely that the US is still better able to weather low prices (land, weather, still lots of independent farmers/small business) and after a correction many of the new corn acres will go back to whatever they were. It's just like fracking and shale oil - this stuff has been around since the 70's, but cheap oil prices meant it remained untapped - it's different now.
As for demand, it's really hard to say if the world continues to socialize government which usually puts a pretty tight cap on growth. It's one thing for a population to start wanting a better diet and it's another thing to be able to pay for it. | |
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a new source of Chinese supply
