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In the commodity markets one of the most closely watched reports is the US Department of Agriculture (USDA) estimates of crop plantings for the 2009-2010 season. By all standards the report was bullish. We will see a drop in plantings of 2.8% to about 246 million acres. Farmers cited the high cost of fertilizer and lower prices as the reasons for the drop in plantings, especially for corn which requires more fertilizer per acre than other crops. Some of the bullishness was tempered by a slowing of demand due to the economic crisis.
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Continue reading Will lower grain supplies affect food prices?
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