US almost out of corns stocks by harvest 09

The US will be almost out of corn stocks by harvest 09, according to Phil Brasher in the Des Moines Register. You must read the article it points up the complete failure of corn to ethanol as a sensible economic or fuel policy.

Key quote 1

Corn supplies are projected to fall by one-third to just more that 1billion bushels, or about one month’s consumption, when harvest startsnext fall. Supplies could be even tighter; many analysts think thelatest production forecast is overly optimistic.

Surely the first responsibility that a government has to its people is to try and feed them, not allow them to drive around cheaply How low will stocks go? That’s not a limbo dance that I want to watch. What’s that going to do to prices and the economic viability of corn ethanol?

Key quote 2

But the real key to keeping the United States from running short oncorn and soybeans may lie in South America, and how many acres farmersin Brazil and Argentina plant to soybeans in coming months. If theyincrease acreage significantly, that could ease soybean prices andsteer U.S. farmers to more corn next spring, economists say.

Surely the key to keeping the United States from running out of diesel and gas may lie in the middle east. If those countries ramp up production indefinitely the price of oil will remain constant and the US will be able to drive around at $1/gal indefinitely.

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One Response to US almost out of corns stocks by harvest 09

  1. larryhagedon 25 September, 2008 at 4:21 am #

    In fact it just makes economic sense to process corn for best usages. The old wasteful process of just throwing the corn to animals is unsuportable today.

    In the future, we will be processing a much larger portion of our corn crop into human food, pharmaceuticals, industrial products, plastics, animal feeds and fuels.

    At this point there is no corn market that is not being supplied. Even with a much smaller corn crop we can still massively over supply the world corn food markets.

    If we run short of animal feed, there are many alterative crops that can fill the gaps. One is green algae.

    Green Algae had been used for human and animal food and pharmaceuticals for centuries. After the oil extraction it makes a very nice high protein cake that can be mixed in many animal feed recipies.

    We are massively increasing production of green algae to make fuel. High protein algae cake is a ready by-product that can easily be made into a cheap feed supplement. This can easily take up the slack if corn volume falls off too much.

    There will be some sky is falling bitching of course, but no human or chicken or hog will need to go hungry for a lack of food.

    larry hagedon

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