3/31/2011

Corn Limit up---what's it mean?

The quoted corn price is for feed corn, meaning feed for animals (cows and shit). The corn people eat is called sweet corn and prices are not quoted.  Today's price is what they call "limit up" meaning the exchanges will not allow a bigger move today and the price is very very high for Sept delivery.  This is a tip that balls out inflation for food (conveniently left out of the government reports) will be off the charts.  Today's crop report indicated that farmers intend to plant the largest crop since WWII when yields were but 40 bushels per acre.  Today the yield is nearly 160 bushels per acre with some reports of 400.  Remember that the environmentalist genius crowd wants 15% of the crop for ethanol, a substance that hurts engine performance and just burns, and we see that a crop under supply pressure will be pressed harder by the Liberals who need to teach us a lesson by having high gasoline prices.  But what the report doesn't tell us is that the ground in the Midwest is still covered with both ice and snow, two substances that eventually melt and if there is enough melt there are floods and floods make it real hard to plant corn.  Today, the opening day of baseball season, there is snow in Chicago, Cleveland, Minneapolis, Denver, Cincinnati, etc. etc. places where we expect spring weather.  This means planting delays which means that the yields may be compromised.  Compromised yields mean even higher prices for the corn that finally comes in.  A worst case scenario is starving animals, broke farmers, and famine in parts of the world.  Best case will be that God bails us out again, but His patience is wearing thin.......