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GOOD NEWS: We May Have Avoided Global Famine...For Now
Kowalski from Nebraska calls in with the Ag Report and it's mostly good news. The US yields were a bit higher than average and reports from China seem positive as well. Europe even did pretty well despite the heat wave.
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Just on a quick deal with the ag report. It is looking like the u.s is going to be producing very similar to last year. Not exactly a record mildly above average. Which is good. Commodity prices have been coming down lately. There are some good signs out of China that they have been producing for their summer crop which was a bit better than they were expecting. But I personally won't believe that until about December when we know that definitively. They've done this before to drive down prices to buy south American grand cheap. but it looks like they probably are doing all right. but aside from that just there's been too much heat in Europe but they're probably going to be okay. the droughts in the southwest are still not great. but there's enough irrigation for now. So probably no major famine but food prices will be up, especially in places like the middle east and east Africa. okay well, it sounds like not as bad as it could have been. no, but a lot of this is not good long-term. if the fertilizer situation is not resolved. Basically, the ground can store nitrogen for a while but from what I've been reading a lot of places, especially with marginal ground particularly in like Africa and South America their soil is not as good as ours which isn't like temperate zones. They rely more heavily on artificial fertilizers to have just like a crop that would be considered pretty poor in the states. and if they don't get more fertilizer they're just there there isn't going to be any left in the soil to use next year. because we probably have 50% of our fertilizer in the ground at any given time. but you know if you burn through that it's gone and you can't make that up. so maybe we'll get some more crop rotations but yes the u.s could probably also step up its game. I personally am very disappointed in the leadership of the USDA.
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