Saturday, January 13, 2007
Mexico, January 13, 2007
The harvest actually wasn't that bad, considering the drought conditions prevailing over much of the US. And corn farmers had been overproducing for decades to try to use volume to counter high production costs. The recent ethanol boom is temporarily tightening supplies, but once farmers switch more acreage out of soybean production (of which we have too much anyway) that won't be an issue. (Still, corn ethanol isn't a long-term energy solution, but switchgrass just might be.)
It's a total flustercuck.
That's exactly it. The price increase of US corn is only just now starting to make itself felt to US livestock producers; it hasn't had time to impact the Mexican market yet. Somebody is doing some price gouging on the Mexican side of the border.
More blogs about politics.