Market Talk / July 30 - Aug 5

Gilligan said:
Look on the bright side. The drought is causing higher feed prices and ranchers are having to ship hay in, so ranchers are taking their cattle to the auction in a higher volume which is causing beef prices to drop. That’s good news for consumers.

In the short term, yes, but wait until next year!!! OUCH! we will all be eating Flank Steak! $10.50 a Lb.:mad: Maybe not $10.50?:confused:
 
Re: Ethanol

Dave M said:
I believe they make, or can make, ethanol out of the stalks, not the kernels. Should a farmer have some of last year's grain stored but not yet sold, he will get a better price for it later. Those who irrigate will be in good shape besides. Still, it might be a good time to buy corn futures.

Dave
Hmm, as far as making ethanol out of stalks on a widespread basis no they can't at the ethanol production plants right now. Scientists and universities are working on it right now. At South Dakota State University they are working to make ethanol out out of cellulose crop residue, wood energy and switch grass. But as far as widespread production of ethanol corn kernels are the key not the stalks. Stalks are for silage and believe me there will be a lot of people putting their corn crops into silage production to feed cattle.

My dad though put some of last years corn into storage and we have an irrigated field. He should be okay, I believe he might have hedged some corn prices as well.

The problem up here Show-me is the ears aren't even filling out so in some areas where the drought hit really there aren't even kernels to turn.
 
nnuut said:
In the short term, yes, but wait until next year!!! OUCH! we will all be eating Flank Steak! $10.50 a Lb.:mad: Maybe not $10.50?:confused:
Lol, yeah I bought beef from my Dad for around 2.00/lb. The grocer marks up beef quite a bit, $10.50/lb, lol. Not the mention it tastes a hell of a lot better:nuts: If you want good beef nnut just go to your local farmer, make sure its corn-fed beef though and not organic grass fed beef, no idea how people can eat that stuff.
 
Re: Ethanol

gunsmokex said:
The problem up here Show-me is the ears aren't even filling out so in some areas where the drought hit really there aren't even kernels to turn.

Ewwwweeeee! That is bad!

Actually for those that are interested, Corn is not at all the best alcohol source and you can only use the kernel. After the fermenting process is done the residue does have food value and is feed back to animals.

Sugar cane is the best source because......sugar makes alcohol. Whether it is wine, beer, or hard liquor you gotta have sugar to make alcohol. Some are looking at using sugar beets which is a better source.

I read recently that getting ethanol from corn is only 25% efficient. Getting Bio-diesel from soybeans is ............I believe around 90% efficient.

Brazil is energy independent because they have the perfect conditions for the perfect source of ethonal..........Sugar Cane. We have a long way to go and that is why they are actively looking at better alternatives to corn. Not enough corn in the U.S. to do the job like in Brazil plus we use corn for may other uses. Corn sweetener, starch, feed, food, ect. Also they probably don't use as much energy as US. Also you can not transport ethanol thru pipelines because it is corrosive to the pipe. This is why when they build a plant they want barge, rail, and road access. The fact that MTB's are being replace by ethanol has made a supply crunch driving the ethanol price up and not helping the end consumers pocket book.

Don't get me wrong, it's a good start. We need cut our use of energy more. More tax credits to consumers for energy efficiency improvement. More LED light technology. Imagine if you replace every street light in the world with a super high efficiency, super long lasting LED bulb.
 
I'm new to this forum, but thought it was TSP (not corn futures) talk? Anyway, I've been following markets since 1995 (new on this forum, not new to trading) and here's my take as we stand now:

F Fund: I've never like bond funds (yechh), but the yields on long term treasuries have hit the upper trendline of a twenty years' long parallel downchannel several weeks ago. Other indicators also confirm that strong long-term resistance (to a rise in _yields_) has held. We're short-term oversold (again, referring to yields) and due for a bounce. Any such bounce would be a good opportunity to shift some allocation into the F fund (as I plan on doing over the next few weeks).

It's interesting what the above means. Note the significant inversion we have on long term yields vs. short term. The bond markets (which are huge and whose participants are smart money) are flashing: slow down (perhaps recession) ahead. Like I wrote, I don't even like bond funds, but it's not about like, it's about being obective. That channel held, and the bottom of that channel would put yields well below 2%... yeah, crazy, but there it is.

As for the stock funds -- I have had multi-month sells since May; intermediate (weekly is unclear), but now new short-term (daily) sells after Wednesday's short-term buys. Not as clear as bonds -- choppy with buy and sells flipping. But, it looks like that choppiness is about to end. Many seem to think that the end of a fed rate hike campaign is a green light for stocks -- it's not. 2000 was also the end of a series of hikes.
 
oops... it was a moderator talking about corn cob futures... I was just kidding... my dry sense of humour... ;)
 
I got a bulk E-Mail from Investment University this week stating that corn will be the next Microsoft. Millions to be made the message stated. It went on to say that the Gov is supporting the development of ethanol bla bla bla.
 
Re: Market Talk / July 30 - Aug 5 Closing

Will be ending this week's thread of Market Talk... Enjoyed all the good yak! ......
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........See ya on next week's thread.........
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Regards, and be careful!....................:) ..........................Spaf​
 
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