Three Months To Go Until the U.S. Corn Harvest -- Supplies Are Almost Gone
June 6, 2012 • 7:30AM

As of June, the cries are louder that the U.S. corn supply is dwindling down to nothing, with three months left to go until the new-crop harvest starts. Come August, the actual corn available will be the lowest volume in over 15 years.

Blame for lying about this, and covering up the shortage, is rightly put on the U.S. Department of Agriculture (USDA) — the Obama Administration, except for the fact that career-toady Tom Vilsack, Secretary of Agriculture, isn't the master-culprit. His boss, President Obama, is towing the line for the London imperial networks — especially the Bill Gates/Dan Glickman crowd, who talk about food, farmers, and science, all the while implementing dead monetarist/WTO policies of shortages and famine.

'The corn isn't there,' stressed two agriculture economists at the University of Illinois, in the center of the Corn Belt, in coverage today by DroversCattleNetwork (cattlenetwork.com, by Reuters). Scott Irwin and Darrel Good point to the high prices to obtain corn, from Ohio to Kansas, because the grain is scarce. Local prices are running higher than the corn futures prices on the Chicago CBOT casino. This price difference is called, the "basis" price. In central Illinois, for example, the basis price was 53 cents, on top of the futures price per bushel. In western Kansas, home to corn usage in stockyards and ethanol distilleries, the corn basis price for January-to-May, is the highest in four years. 'The USDA can say, don't worry,' said Scott Irwin in mid-May, but, "Basis is still screaming, shortage. The problem is getting worse."

Grain brokers, big cartel marketers, and all corn users are scrounging for supplies. Many New Orleans grain-exporting operators are suspending orders to be met in July, because they cannot line up the corn to meet contracts. The U.S. accounts for about 40 percent of the corn involved in world trade. The biggest buyers are Mexico, Japan, South Korea, and China. Now, the bins are empty.

The USDA, under staff cuts, and policy directives, has ceased even putting out any estimates at all for certain food commodities. The Census Bureau has cancelled reports on soybean crush and soyoil use. The USDA has quit issuing estimates for soyoil going into biodiesel.