Sunday, April 6, 2008

GLOBAL GRAIN SHORTAGE OF HISTORIC PROPORTIONS AHEAD

PRESS RELEASE
Contact: Bill Gary
Commodity Information Systems, Inc.
(405) 604-8726 or (800) 231-0477
www.cis-okc.com

Oklahoma City – The world has consumed more corn, wheat and rice than it produced in six of the past eight years.
Global grain consumption expands nearly every year due to increasing population and incomes. However, grain production has fallen behind and reserves have been used to satisfy expanding demand. Total grain use (coarse grains, wheat and rice) increased from 5.11 tonnes per day in 1999-00 to 5.60 in 2006-07. At the same time, global grain reserves declined from 114.7 days of usage to 56.7 days. World grain reserves have fallen to this level only one time inmodern history... from 1972 to 1974. That period is termed the “great grain robbery” as Russia purchased unprecedented quantities from the US. Grain prices were pushed to historic highs in that period and the US government placed an export embargo on further sales to avoid domestic shortages.
The US is not the only nation promoting bio-fuels. Indonesia, Malaysia, India, Brazil, Canada, Europe and China are all aggressively building bio-fuels manufacturing facilities. The rush to bio-fuels promises to tighten global grain supplies even more. With global grain reserves near historic lows, there will be nothing to fall back on in case of crop failure.
Commodity Information Systems (CIS, Inc.) has prepared a detailed study that explains why grain markets will experience extreme tightness and record prices in the year ahead. The study illustrates the growing threat of global grain shortages with tables and graphs.
This valuable report will be sent free of charge to financial and agricultural news editors. Others may receive a copy for $15.00 by contacting: CIS, Inc., 3030 N.W. Expressway, Suite 725, Oklahoma City, OK 73112, (800) 231-0477, info@cis-okc.com.This email address is being protected from spam bots, you need Javascript enabled to view it

1 comment:

123 123 said...

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Joan Stepsen
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