Impact of the drought is multivariable
Wednesday, August 1, 2012 at 12:16PM
Thomas P.M. Barnett in Citation Post, Russia, US, agriculture, global warming

First, the good news: the "margin squeeze" due to rising corn prices/futures is killing corn ethanol - still the stupidest idea on the planet (outside of Washington-subsidized Iowa).

Then the worse news: Russia/Black Sea region is undergoing another bad drought, raising the specter of another export ban. US is biggest exporter of wheat but the Black Sea trio (Russia, Kazakhstan and Ukraine) account for one-quarter of global exports and are traditionally key suppliers to north Africa and the Middle East.

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