June 10, 2008
Name withheld

Steve, I told you a few weeks ago about the delayed corn planting and its potential impact on yields. The USDA report this am shows a reduction of 5 bu per acre yield to 148.9 bu per acre compared to 153.9 last month. This is a huge change for this early in the season. They now show the carryout at 673 mill bu compared to 1.433 bill last year. They show production at 11.735 bill bu with demand at 12.510 bill. You can see that our demand is higher than our production. I fear that we will not attain the 148.9 yield as we had a 151 avg yield last year with much better conditions. This is a HUGE POTENTIAL PROBLEM!!!!! Prices will have to go much higher to reduce demand so that we do not run out of corn. Then the problem comes again next year as we start out 2009 with very little supply. There is not enough acres for all of the corn, bean and wheat demand to build our inventories unless usage is curtailed in a big way. Steve, this is big!!!!!!! Consumers are having a tough time filling their gas tanks and buying groceries. The probability is very high that this will only get worse and that there is no light at the end of the tunnel. 2009 will be pivotal as we can not again produce less than our usage. 

People in the US have no idea what it is like to be hungry. 

Steve, I am crying as I type this as I fear what lies ahead. 

RR