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...give the industry time to digest the new moves, Washington suspended all trading in grain futures for two days; never in peacetime had such a move been necessary (see box). When the market did open, grain prices fell as much as the daily limit permitted, but by the weekend they appeared to be stabilizing. Still, Carter's critics charged that the embargo would severely damage the U.S. balance of trade, and that his efforts to soften the blow would seriously increase the inflationary budget deficit...

Author: /time Magazine | Title: Grain Becomes a Weapon | 1/21/1980 | See Source »

...Grain exports are measured in metric tons, equal to about 2,205 Ibs. A metric ton of soybeans contains about 37 bu., of wheat about 37 bu., of corn about...

Author: /time Magazine | Title: Grain Becomes a Weapon | 1/21/1980 | See Source »

When it came to taking direct action in support of the U.S. embargo, however, many U.S. allies proved skittish. Two of the other major grain exporters?Canada and Australia?agreed not to increase their sales to the Soviets, but they would not cancel any existing contracts. The other big exporter, Argentina, refused to cooperate at all with Washington. The West Europeans are not selling grain to the Soviets, but refused to curb their sales of high technology. Said French Foreign Minister Jean François-Poncet: "We have no intention of modifying our commercial relations with the U.S.S.R." Added a German...

Author: /time Magazine | Title: Grain Becomes a Weapon | 1/21/1980 | See Source »

Even if America's allies were more enthusiastic in their support, the brunt of Carter's campaign would still have to be borne by the U.S. grain industry, which has long been one of the wonders of the world. A century ago, when the enormous fields of the West were first being sown, Frank Norris marveled at the richness of the wheat crop: "There it lay, a vast silent ocean, shimmering a pallid green under the moon and under the stars; a mighty force, the strength of nations, the life of the world. There in the night, under the dome...

Author: /time Magazine | Title: Grain Becomes a Weapon | 1/21/1980 | See Source »

...Grain farmers had bin-bursting harvests in 1979, and that was for the fifth year in a row. Farmers raised a record 7.6 billion bu. of corn. Much of it, 60%, will be used as animal feed; only about 10% will be consumed directly by Americans, usually in bread, breakfast cereal and fructose (a sweetener). The remainder, before Carter's embargo, was destined for export, along with 36% of the 1979 crop of soybeans and 60% of the year's wheat. The embargo is expected to reduce overall exports from the '79 grain crop by 8%. Most export grain travels...

Author: /time Magazine | Title: Grain Becomes a Weapon | 1/21/1980 | See Source »

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