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U.S. corn production may fall on flooding, heat, drought

Posted by feww on June 28, 2011

Severe flooding in the Mississippi and Missouri river basins have damaged 2.5 million acres of U.S. farmland: Report

Flooding in the Midwest and Northern Plains may lead to a fall in corn production in 2011, according to the CEO of Cargill, the world’s largest commodities trader.

“Clearly, we have lost acres with the flooding,” Greg Page, chief executive of Cargill Inc., told journalist during a visit to Kiev, the Ukraine capital. “Certainly our company is fighting the floods on the Missouri River.

“You could certainly be talking about 300m-400m bushels [lost,]”  Page said.

“The price of corn shot to a record high this month amid surging demand from emerging markets and rising consumption of the grain by the ethanol industry. US corn inventories are set to fall to their lowest since the mid-1990s, according to the US Department of Agriculture.” Said a report.

Added to the problem of flooding in key corn-growing states like Ohio and Indiana, is the worsening drought and soaring temperatures in the southern United States.

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