Summary
This articles is important to all the stake holders in commodity trading especially Corn and related commodities.Delayed Corn planting will create shortages on the world market.The shortage in the world market will in turn shoot the prices up. US may be over taken by China in corn production.
Analysis
The news about delayed Corn Planting is an eye openner to all the commodity traders especially the Corn dealers or companies.
USA is the leading Corn producing country in the world with over 50% production.Any effect on the production cycle greatly affects the entire supply of corn in the world.OTHER countries like Brazil,China,Mexico,South africa and EU countries do have a significant Corn production
In proper agronomical practice,timely planting is key to timely application of all the agronomical crop extension/growing procedures.The key aspects are timely Land preparation,timely planting,timely weed control,timely,pest management and timely harvesting in order for the farmer/producer to accomplish the task on time.
The case of delayed planting will affect the entire agronomical cycle.This in turn will affect the supplies to the world market.The shortage however small it might be will trigger the prices to go up.
To the farmers in other countries who have done timely planting,they will have timely buyers for the corn who will be willing to pay for the crop to meet the supply orders.
The farmers in those areas of the world like Brazil,china,south africa,Egypt among others who have made timely planting will benefit from the shortage created by the US farmers since they will make more sales.
They key challenge about agricultural products is that they sale to the same markets.This has been one of the cause of the price volatilities due to excessive supply which lead to price falls.On the other hand the shortages lead to price increments on the world market.The shortage of the crop from one supply source benefits the other producing countries like China,Mexico and Brazil in the market.
Food prices will rise in the event of Corn shortages on the world market.The impact is likely to be greatly felt in Poor countries world wide.Food riots will be registered world wide and this will strain the United Nations food operations.
