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SE Arkansas | There is 2 percent secular growth for protein demand worldwide due to population growth and rising incomes. This Demand is very Inelastic. Per USDA estimates, demand for Corn grew 1.4 percent during this Worldwide Pandemic. So Hot or Cold, Wet or Dry, the World needs 2 percent growth in grain production. And with the Greenies thinking that Ethanol and Biodiesel fit into their “Save the Planet” scheme, we will probably need more than 2 percent growth. So any worldwide production below trend is very Bullish. What’s been amazing to me is how a Record Soybean Crop in Brazil did not set the market back at all. | |
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One of the most important factors in Grain Pricing is rarely mentioned on NAT.
