California is the biggest U.S. producer of agricultural products. It’s also in its third year of drought, with 95% of the state in moderate to exceptional drought conditions. Food prices have already risen as a result, but there are likely even higher prices to come. Oh, and the rivers are so dry salmon are being driven to the sea in tanker trucks.
U.S. ending stocks numbers for corn and soybeans have become available for year end 2012, and the results are stunning. According to the data, we will have only 19 days of corn in storage this year and only 16 days of soybeans. For soybeans, this is the lowest stocks-to-use ratio on record; for corn it’s the second lowest.