USDA Corn Forecast Good News for Fertilizer Producers
Source: http://potashinvestingnews.com/2330-usda-corn-forecast-good-news-for-fertilizer-producers.html#
"Despite U.S. farmers move to plant more corn this spring, supplies will remain tight through 2012, according to the U.S. Department of Agriculture?s chief economist Joe Glauber. ?To think we?re at a 5 percent stocks-to-use ratio, to get stocks-to-use ratio for corn up to 10 percent or 13 percent, you?d have to bring in a lot of acres,? Mr. Glauber said. ?I don?t think you?re going to get up to those levels in one year.?
"Corn, wheat and soybeans are prime examples of fertilizer-intensive crops; crops that require a great deal of fertilizer applications in order to grow to their prime condition. As the prices of these grains go up, so does the incentive for farmers to fertilize their crops. This in turn is good news for potash and phosphate prices."
"Corn supplies are declining as strong demand from ethanol producers is rekindling the debate about using food as fuel. On Feb 14th the USDA will release its annual agriculture industry outlook. This document will contain projections through 2020."
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