• 11 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 12 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 12 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 13 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 14 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 14 hours VW Fails To Secure Critical Commodity For EVs
  • 15 hours Enbridge Pipeline Expansion Finally Approved
  • 16 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 17 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Alt Text

Mass EV Adoption Could Lead To $10 Oil

As the adoption of electric…

Alt Text

Oil Prices Poised To Rise In Early 2018

A consistent fall in comparative…

Alt Text

Oil Prices May Hit $60 By End Of 2017

As oil prices back down…

Are Corn Prices Indicating that $140 Brent Crude is on the Way?

Good article on corn this morning by Smart Money Europe (Zero Hedge link).

The bottom line is that corn is sitting at a two year high. Reading SME you have to conclude there is more on the upside. I’m lifting this chart from the piece to make a point:

Corn - Monthly Chart

I was looking at this (ugly) chart and realized this was the same chart for crude. Now look at this chart that compares the two. (Note: I use Brent as I think WTI is irrelevant)

Corn and Brent Crude

This chart is truly ugly. Looking at this it hard not to conclude that Corn = Crude as far as directional price moves go. Which is the dog and which is the tail? I think crude drives corn. It takes a bunch of energy to grow corn (diesel and fertilizer). There is also the ethanol connection. The higher the price of gas, the greater the price for ethanol, the greater the price for corn.

The conclusion is that the dog (crude) is wagging the tail (corn). But that is not what the chart says. Over the past four months corn has outpaced oil. In the past quarter the tail has been wagging that dog.

One of two things will happen. Either corn corrects or crude corrects. My bet? The dog will catch up with the tail. This chart is telling me that $140 Brent is on the way.

By. Bruce Krasting




Back to homepage


Leave a comment
  • Anonymous on April 09 2011 said:
    Interesting article Bruce. This kind of comparison makes one sit up and take notice. Thank yiou. I wonder if Fred would like to comment as I'm not very well infomed on the difference between Brent and WTI.
  • Anonymous on April 11 2011 said:
    Interesting thoughts but I can't see crude oil rising *because* corn has. More I read this as one bullish element in corn's story is high crude oil prices (production costs but more importantly allows ethanol margins/discretionery blending) but then you add Chinese demand, lack of cheap alternatives, really tight old crop stocks, worries about wetness delays for new planting, investment inflows and you've got a pictures that's extremely bullish for months to come.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News