Food crisis fears as US corn soars
The Largest Natural Disaster In U.S. History: The Endless Drought Of 2012 Will Bake America Well Into August
Why is the heartland of the United States experiencing such a horrific drought right now? At the moment, approximately 61 percent of the entire nation is experiencing drought conditions, and this is absolutely devastating farmers and ranchers all over the country.
The U.S. Department of Agriculture has created the largest natural disaster area in U.S. history. The USDA has declared 1,016 counties in 26 U.S. states to be disaster areas. The USDA declaration basically covered about half of the nation, and there is now no denying how horrible this drought really is. You can see a map of this disaster area right here.
This endless drought is being compared to the nightmarish drought of 1988, and if it persists into August it could become perhaps the worst drought that America has ever seen. The USDA says that approximately 60 percent of all corn in the country is experiencing "moderate to extreme" drought conditions. If this drought does not end soon, the losses are going to be mind blowing. Already, it is estimated that farmers and ranchers have suffered billions of dollars in damage.
Why is the heartland of the United States experiencing such a horrific drought right now? At the moment, approximately 61 percent of the entire nation is experiencing drought conditions, and this is absolutely devastating farmers and ranchers all over the country.
The U.S. Department of Agriculture has created the largest natural disaster area in U.S. history. The USDA has declared 1,016 counties in 26 U.S. states to be disaster areas. The USDA declaration basically covered about half of the nation, and there is now no denying how horrible this drought really is. You can see a map of this disaster area right here.
This endless drought is being compared to the nightmarish drought of 1988, and if it persists into August it could become perhaps the worst drought that America has ever seen. The USDA says that approximately 60 percent of all corn in the country is experiencing "moderate to extreme" drought conditions. If this drought does not end soon, the losses are going to be mind blowing. Already, it is estimated that farmers and ranchers have suffered billions of dollars in damage.
“The increases in foreclosure starts in the first half of the year will likely translate into more short sales and
bank repossessions in the second half of the year and into next year,” said Brandon Moore, chief executive of RealtyTrac.
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Brazil is getting too much rain. India, not enough.
The monsoon season from June to September provides 70% of India's annual rainfall. But the rains haven't showed up. So the problem now is this is expected to be the worst monsoon season for India since 2009, meaning its exports will fall as the country has to shore up its own domestic supplies from sugar, rice and soybeans.
Brazil, which supplies nearly one-fifth of the world's sugar, is struggling with unseasonable rains... again. This is also hampering cane harvesting. The heavy rains also mean the cane is literally "watered down" - the sugar content is diminished. Now, Brazil's sugar industry is suffering with the fact that output is already down nearly 30% since April.
Australia is also facing delays because of rain. The result: Sugar is up nearly 11% in the last month.
Is this bullish trend in commodities going to continue? We're approaching sugar's main historic bull stretch of this year and supplies will be strained in the short term.
The monsoon season from June to September provides 70% of India's annual rainfall. But the rains haven't showed up. So the problem now is this is expected to be the worst monsoon season for India since 2009, meaning its exports will fall as the country has to shore up its own domestic supplies from sugar, rice and soybeans.
Brazil, which supplies nearly one-fifth of the world's sugar, is struggling with unseasonable rains... again. This is also hampering cane harvesting. The heavy rains also mean the cane is literally "watered down" - the sugar content is diminished. Now, Brazil's sugar industry is suffering with the fact that output is already down nearly 30% since April.
Australia is also facing delays because of rain. The result: Sugar is up nearly 11% in the last month.
Is this bullish trend in commodities going to continue? We're approaching sugar's main historic bull stretch of this year and supplies will be strained in the short term.
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