Corn and Ethanol.

Corn Gains to One-Month High on Concern Higher Acreage Won't Boost Stocks

By Tony C. Dreibus and Luzi Ann Javier - Apr 1, 2011 6:40 AM ET

Corn rose to the highest price in almost a month in Chicago, extending yesterday’s jump, on concern increased plantings in the U.S. will fail to rebuild global inventories.
U.S. stockpiles on March 1 dropped to 6.52 billion bushels, the lowest for the date since 2007, the Department of Agriculture said yesterday. Higher profits will spur farmers to sow corn on about 92.178 million acres, the second-largest area since 1944, at the same time that increasing food and biofuel demand cuts world inventories, the USDA said.
“Corn is very much supported by cattle feed, but also by ethanol in the U.S.,” said Jonathan Bouchet, an analyst at OTCex Group in Geneva. “Corn is still a needed commodity. It has the consumption behind it.” http://www.bloomberg.com/news/2011-...igher-u-s-acreage-won-t-boost-stockpiles.html
 
OHH, DING DING, somebody gets it!!! Not to mention that now the price of corn has been legislated to a new high and the corn corporations will start farming marginal land and dozing out all of the wildlife cover to get as many acres in as possible and fast as possible. Ride the wave. Speaking of wave, now we will lose our fresh water supplies faster than ever.


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The problem is there is dwindling diversification in our crops.
As corn dominates more and more farming landscapes,
then it is inevitable there will be a corn-based ailment arise
that threatens ALL the corn based food and by-product dependencies,
leading to a supply shortage and price crisis.

We learned this already, no?

Um yes on the first, um maybe not on #2. low prices on one crop mean more acres planted on crop that pays better-think cotton vs. soybeans. more cotton acres planted due to cotton shortages leading to higher raw materials prices for cotton lead to less acres planted for food crops. less acres planted for food crops leads to higher prices for food crops=more acres planted to food crops.

imbalances created between growing seasons. does the imbalance become more imbalanced over time further destabilizing food stocks relative to one another, relative to non-food stocks? maybe thats whats happening. can it rebalance? maybe. quickly? maybe, maybe not. :sick:

If enough acres of food supply globally don't produce enough to replenish global carryover reserves to provide for future bad-production years globally, the world is in trouble regardless of inflation-deflation issues globally. this looks to be a bad production year globally, world grain reserves are very low already. And then there is that wheat rust that has not hit North America-yet. the geneticists are working frantically to find a defensive gene in the wheat material that can protect N. Am wheat from the rust. they haven't found a reliable one yet. :worried::worried:
 
Define rich? New 4X4 SUV every year? Two or three large vacations a year? Big 2k sqft house? I might know a few.

They are doing far, far better today, without subsidies, and making $7 a bushel on corn this year, than three or four years ago, when prices were $1.50 a bushel, and the government paid them not to grow anything.

That's the other part of things, you know. The government pays a lot of farmers NOT to grow anything at all on their land. Having the price of corn hit $7 should help put some fallow land back into production this year.

Farm income is set to rise 8% this year. It rose 19.8% in 2010. That's nothing to sneeze at, when the rest of the economy has taken a hit.
http://www.agweb.com/article/usda_sets_lofty_2011_farm_income_forecast_/

U.S. net cash income in 2011 is forecast at $98.6 billion, up $7.3 billion (8%) from 2010, and $26.8 billion above its 10-year average (2000-2009) of $71.8 billion, according to an update today from USDA's Economic Research Service (ERS).

USDA also said that net farm income is forecast to be $94.7 billion in 2011, up $15.7 billion (19.8%) from the 2010 forecast. The 2011 forecast is the second highest inflation-adjusted value for net farm income recorded in the past 35 years. The top five earnings years for the past three decades have occurred since 2004, attesting to the profitability of farming this decade.

This is a relatively good time to be a farmer.
 
To clarify, farmers are growing more ethanol corn because with the subsidies they make more money, thusly making the Wheat crop dwindle in an already weak market. Wheat = Bread
Sweet corn for human consumption, and feed corn fall into the same category. :cool:

yes, I'd say potentially more money, but once there, barely survivable.
How many rich corn farmers do you know?
All the mechanization needed to compete keeps them, and subsequently the surrounding communities financially strapped.
The principle behind methanol was to break free of big Ag's grasp enough so the little guy could turn enough profit to invest in diversification, i.e. supplying a different demand.
 
OHH, DING DING, somebody gets it!!! Not to mention that now the price of corn has been legislated to a new high and the corn corporations will start farming marginal land and dozing out all of the wildlife cover to get as many acres in as possible and fast as possible. Ride the wave. Speaking of wave, now we will lose our fresh water supplies faster than ever.

The problem is there is dwindling diversification in our crops.
As corn dominates more and more farming landscapes,
then it is inevitable there will be a corn-based ailment arise
that threatens ALL the corn based food and by-product dependencies,
leading to a supply shortage and price crisis.

We learned this already, no?
 
Reps to you... quit making sense...

The problem is there is dwindling diversification in our crops.
As corn dominates more and more farming landscapes,
then it is inevitable there will be a corn-based ailment arise
that threatens ALL the corn based food and by-product dependencies,
leading to a supply shortage and price crisis.

We learned this already, no?
 
Your graph is misrepresenting the facts. The protein from a bushel of dry corn should be the same before and after ethanol processing. You have to then make up the starch and carbohydrates some where else in order to feed it.

Forcing a product on the consumer by legislating it totally unethical, immoral, counter productive to the natural order of supply and demand. It is almost as bad a price fixing.
 
You have no clue about supply and demand. EVIL CORN LOBBY SENT THEIR SLICK SUITED LEACH TO PAY OFF CONGRESS INTO REQUIRING BY LAW THE ADDITION OF ETHANOL INTO ANTHER COMPANIES PRODUCE.

Each bushel of Corn turned into ethanol produces BOTH FUEL AND FEED:



And the amount of feed being provided into the animal feed market from ethanol producers is growing as well:​






Ethanol corn provides BOTH fuel AND food.​
 
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That's one reason, the other is that demand is high in other countries food shortages are abundant and getting worse. That's one big reason for the demonstrations in the CRAZY Arab Countries, they can't afford bread.:o

so we will sell them the whole grain anti-christ, CORN!
no less the industrial-low-protein variety.
http://skipthepie.org/cereal-grains-and-pasta/corn-flour-degermed-unenriched-yellow/compared-to/wheat-flour-white-industrial-protein-unbleached-enriched-2/

man, beeeg trouble.
 
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