Rationing the future

摘要

Even folks with a bent for finding the dark cloud behind every silver lining would be hard-pressed to underestimate the game-changing nature of the current drought. Feedlot pens were beginning to stand vacant and ethanol plants were going dark beforethe Aug. 10 World Agricultural Supply and Demand Estimates confirmed what the market had anticipated. Best-case scenario, this year's drought-hammered corn crop will come in around 10.8 billion bu., 13% less than the previous year's crop, the least production since 2006 on the lowest yield (estimated at 123.4 bu./ acre) since the 1995-06 crop year. Corn contracts closed at $7.98-$8.12/ bu. through the new crop year on the day the report was published.