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Gary noted that shipments of corn, grain and wheat have stalled as receivers of U.S. commodities still don't trust letters of credit from many banks, if they can be secured at all. U.S. corn "commitments," which include corn already shipped and outstanding sales, have tumbled 40 percent from a year ago. Wheat commitments are down 29 percent. If the credit markets do not right themselves soon, he said, grain exports could dwindle to some smaller Asian countries. Exports to Europe might also weaken if credit does not begin to flow more easily in the next month, he said. Gary Martin, president of the North American Grain Export Association, thinks the possibility of a global food shortage is overblown. The trade group represents public and private grain exporters, including Cargill Inc. and Archer Daniels Midland Co., as well as some farmer-owned cooperatives. A spokesman for ADM declined to comment, and representatives for Cargill deferred comment to NAGEA. Martin said that while supplies are mounting in the U.S. as worldwide demand slows, any shipping delays are likely to be on an individual basis, and that credit issues are not a widespread problem for food transfers around the globe. He noted that the U.S. has systems in place to prevent major disruptions in the supply chain
-- such as the USDA's GSM-102 program, which guarantees credit for commercial financing of U.S. agricultural exports. A World Trade Organization task force will meet on Nov. 12 to assess the current credit crisis' impact on global shipping. "That's a big deal," analyst Mavrinac said. "It shows just how far-reaching this thing is."
[Associated
Press;
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