As the chart below illustrates, CORN -- an ETF tracking the price of corn -- had a monster day yesterday. The catalyst was a news story that in spite of greater land masses in the U.S. being devoted to growing corn, the nation's stockpile will not grow. The U.S. currently accounts for approximately 39% of the global corn harvest, according to the USDA, and so inability for U.S. production to meet demand needs could create corn shortages on a global basis.
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Also of relevance here is the global political situation. As we've noted recently, a tightening of global money supply could lead to a deflationary spiral, sending commodity prices tumbling down. Moreover, the U.S.'s military action against Libya moves the world one step closer to a larger, broad-scale war. Should such a war emerge, commodity hoarding and supply destruction become more likely due to fear of certain military tactics.