Grain Tug Of War Intensifies: Drought-reduced yields add heat to the ongoing food-versus-fuel debate

摘要

The drought-stricken 2012 U.S. harvest ignited a blowtorch beneath simmering supply concerns. As ethanol and its coproducts surpass feed as the top use of the U.S. crop, producers of live-stock, dairy, and poultry are struggling to cope with higher and more volatile feed costs. Preliminary estimates are for about a 10.7-billion-bushel corn crop, setting the stage for an end user tug-of-war over the next year. If recent short crop years are an indication, livestock producers will bear the brunt of the rationing.