Midwest weather forcasts, where most of US corn is grown, indicates further deterioration from above average high temperatures and below average rainfall. Corn is due for more damage from a drought that has produced the worst U.S. growing conditions in almost a quarter century.
Only 31 percent of this year’s crop was good or excellent last week, the USDA data showed. The figure was lower than the 38 percent rated as poor or very poor.
Archer-Daniels-Midland Co. (ADM) is at risk, because higher corn prices tied to the drought will make the company’s ethanol production more costly. Doesn't it make more sense actually to shut down all ethanol production and use corn for food? Yes.
The effect on packaged-food producers will depend on the extent of damage to soybeans as well as corn.
The idiotic ethanol program is a boondoggle from start to finish, and a corruption ridden program designed to subvert politicians, which it has done amazingly well. John McCain among many many others. Where is the outrage? Where are the prosecutions?
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