"U.S. Farmers Going All Out, But Grain Bins Thinner"

"U.S. farmers say they will plant some of the biggest corn and soybean crops ever this spring, racing to keep pace with unrelenting global demand that's rapidly depleting stockpiles and driving up food costs.

A government survey found corn plantings would be the second-largest since World War Two and soybeans the third highest ever. But traders focused on a companion report that showed unexpectedly small stockpiles, sending corn prices up by 5 percent. Wheat and soybeans surged more than 3 percent. ...

The USDA reports underscored that U.S. farmers are reaching the limits of arable land in the world's biggest crop exporter, with increased corn crowding out soybeans and cotton. Spring wheat sowing, while among the biggest in decades, could yet shrink."

Charles Abbott reports for Reuters April 1, 2011.

Friday, April 1, 2011