• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 3 hours americavchina.com
  • 39 mins Greta named Time Magazine "Person of the Year"
  • 44 mins DUMB IT DOWN-IMPEACHMENT
  • 6 hours Tories on course to win majority
  • 7 hours Winter Storms Hitting Continental US
  • 1 day China Burns More Coal than the Rest of the World !
  • 10 hours 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 2 hours Aramco Raises $25.6B in World's Biggest IPO
  • 6 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 1 day POTUS Trump signs the HK Bill
Alt Text

Are We Really Facing A Battery Metal Shortage?

Electric car builder Tesla foresees…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Oil's Big Push on Corn

You would think that with oil crisis levitating over $100/barrel and gasoline continuing its relentless march towards $5/gallon, farmers would be wringing their hands, wondering how they can afford the fuel for their machinery. Not so.

The burgeoning demand for energy has spilled over to the corn market, where demand for feedstock by ethanol refiners is going from strength to strength. Nearly 40% of the country’s corn crop is being diverted to ethanol production. Margins at the big ethanol producers, like Archer Daniels Midland (ADM), once nonexistent, are now widening rapidly.

I have been a huge bull on the whole food complex since I put out my watershed piece last May (click here for “Going Back Into the Ags”). Now that we are into the planting season, you might expect the volatility of food prices generally to increase. There are still drought conditions in many of the world’s major producing areas. Stockpiles are near record lows. Much of the unrest in the Middle East is over rapidly rising food prices, where they are huge importers.

Notice that once the S&P 500 bounced, the first thing that traders poured back into were the ags, soaking up ETF’s (JJG) and (DBA) as fast as they could click their mice. I think we are one year into a decade long bull market for food, and that investors should be buying every substantial dip in the sector.

CORN

Archer Daniels Midland

JJG

DBA

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Anonymous on March 05 2011 said:
    ridiculous. there is no food shortage, period. Further the Chinese are not going to allow a continuation of the U.S. ethanol fraud. Look for $4.50 wheat and $3.90 corn in the next 20 months.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play