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Corn Opens Limit Up As HFT Robots Parse What "Ninefold Chinese Import Increase" Means In Fortran

Tyler Durden's picture




 

It was less than three short days ago that we wrote about what is poised to be an imminent surge in corn prices. To wit, we said: "If revised Chinese import estimates by the US Grain Council are even
remotely correct, look for corn prices of $6.80 a bushel at last check
to jump by at least 15% in a very short amount of time. As the FT reports, "Corn prices – and with them, the price of meat – are set to explode if the latest import estimates from China are correct. The US Grain Council, the industry body, said late on Thursday
that it has received information pointing to Chinese imports as high as
9m tonnes in 2011-12, up from 1.3m in 2010-11.
" Why is this a
concern? Because "the US Department of Agriculture, which compiles
benchmark estimates of supply, demand and stocks, forecast Chinese imports at just 1m tonnes in 2011-12." In other words, the whole forecast supply-demand equilibrium is about to be torn to shreds." And with the market being perfectly efficient, and not dominated by dumb robotic HFT trading at all, it has taken the "market makers-cum-liquidity providers-cum-no volume meltup facilitators" just over 48 hours to understand what this means. And what it means practically, is another limit up open in the grain.

And after Rough Rice had a nice profit taking two day session, the world's most consumed staple is once again back on the verge of $16 and breaking out to the $20-24 level. We wonder how Egyptian protestors will feel when they realize that in the two weeks since the Egyptian revolution started in earnest, most foodstuffs have increased by another 15%+.

 

 

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Wed, 02/09/2011 - 10:38 | 946122 SpeakerFTD
SpeakerFTD's picture

But you can't eat corn. Oh wait.

Wed, 02/09/2011 - 10:41 | 946133 ColonelCooper
ColonelCooper's picture

The rice however, is questionable.

Wed, 02/09/2011 - 10:58 | 946207 financeguru500
financeguru500's picture

The real question is How will this affect corn subsidies in the U.S. Will the U.S. still be producing Ethanol when the cost outweighs the benefits?

Wed, 02/09/2011 - 11:03 | 946229 ColonelCooper
ColonelCooper's picture

The cost has outweighed the benefits from day one.  The current ethanol subsidy is just north of 50 cents per gallon.

 

Wed, 02/09/2011 - 11:23 | 946316 financeguru500
financeguru500's picture

Do you think well ever go back to not using ethanol?

Wed, 02/09/2011 - 11:29 | 946329 Capitalist10
Capitalist10's picture

Good thing we're spending our tax dollars (and borrowing more from the Chinese) for those corn subsidies.  Otherwise, who would grow the stuff?

Wed, 02/09/2011 - 11:28 | 946327 BobPaulson
BobPaulson's picture

Exactly. Even Brazilian sugarcane ethanol is marginal. Dem cornbelt votes is 'spensive.

Wed, 02/09/2011 - 12:01 | 946454 pan-the-ist
pan-the-ist's picture

But it's not socialism when it's requested by a congressman in a Red State.

Wed, 02/09/2011 - 12:07 | 946471 ColonelCooper
ColonelCooper's picture

I think by "Dem", he meant "them".

Wed, 02/09/2011 - 12:23 | 946531 pan-the-ist
pan-the-ist's picture

I know, but I beat farmer socialism horse all the time.

Wed, 02/09/2011 - 12:54 | 946666 ColonelCooper
ColonelCooper's picture

Sorry I butted in.  My bad.

Wed, 02/09/2011 - 12:28 | 946550 tmosley
tmosley's picture

It's ok when they do it.

lol

Wed, 02/09/2011 - 10:41 | 946138 duo
duo's picture

But you can make ethanol out of it and either drink it or mix it with your gasoline.

Wed, 02/09/2011 - 10:53 | 946184 Sudden Debt
Sudden Debt's picture

WAIT WAIT WAIT!!!!!

 

I ACTUALLY THINK MY MORNING CORNFLAKES MAY ACTUALLY CONTAIN CORN!!

 

WHAT'S NEXT???!!! THE PRICE OF THE LITTLE TOYS ALSO GOES UP??!!

Wed, 02/09/2011 - 11:48 | 946410 Expat
Expat's picture

The price of the little toys?  That depends on the price of lead, my friend.

Funny, when you think about it.  We barter corn to China in exchange for lead...toys.

Wed, 02/09/2011 - 11:46 | 946401 SteveNYC
SteveNYC's picture

Great, there goes my morning corn flake fix.

Wed, 02/09/2011 - 10:39 | 946124 The Axe
The Axe's picture

Tyler, you were spot ON!!! Long Jiffy Pot

Wed, 02/09/2011 - 10:40 | 946129 Vergeltung
Vergeltung's picture

you mean Jiffy "Pop"?  ;-)

Wed, 02/09/2011 - 10:43 | 946144 papaswamp
papaswamp's picture

Maybe he smokes his corn instead of eating it. Of course this means a bottle of my favorite whiskey is about to rise in price...damn it!

Wed, 02/09/2011 - 10:50 | 946175 Agent P
Agent P's picture

You really should consider the malted barley variety...price has nothing to do with it.

Wed, 02/09/2011 - 12:15 | 946500 Rusty Shorts
Wed, 02/09/2011 - 13:05 | 946719 johnQpublic
johnQpublic's picture

screw your whiskey, whats gonna happen to the price of my corn kernel cat littler?

 

aint america great, we have cat litter others would eat. Hell, we could eat it.

Wed, 02/09/2011 - 13:35 | 946829 Iam_Silverman
Iam_Silverman's picture

"corn kernel cat littler"

Ummm, don't you mean Corn COB cat litter?

It is also very handy in the tumbler for cleaning up brass picked up at the local outdoor range - with a shot of Flit or Lyman polish, of course!

Ground corn cob has been used for years in many different applications, including animal feed.  Don't know of many humans that have developed a taste for it though.

Wed, 02/09/2011 - 14:22 | 947006 velobabe
velobabe's picture

 use to eat dog biscuits, growing up. i didn't tell any one though†

Wed, 02/09/2011 - 14:36 | 947048 Hephasteus
Hephasteus's picture

I know people who eat dog biscuits as adults. I know people who bake dog biscuits and taste test them.

Wed, 02/09/2011 - 10:53 | 946188 SWRichmond
SWRichmond's picture

as much fun to make as it is to eat, bitches

Wed, 02/09/2011 - 10:58 | 946204 Turd Ferguson
Turd Ferguson's picture

Thanks, TD.

I'd really appreciate it if you could cook up a rally in the bean pit, too, if you get my drift...

Wed, 02/09/2011 - 10:39 | 946126 Vergeltung
Vergeltung's picture

there's great foresight to be found here at ZH.

Wed, 02/09/2011 - 10:51 | 946176 jus_lite_reading
jus_lite_reading's picture

Shhh. that's our secret.

Too bad because when the SHTF, only a select few will know what is going on.. like this "stuff"

The latest national survey by the Pew Research Center for the People & the Press, conducted Feb. 2-7, 2011 among 1,385 adults, finds that nearly half (48%) say they have heard a lot about the anti-government protests in Egypt; about the same proportion (52%) reports hearing little or nothing.

They'd rather watch Dancing with the Stars than to bother with "stuff" like this..

Wed, 02/09/2011 - 10:58 | 946206 IrishSamurai
IrishSamurai's picture

The Keynesian won 2008 with 52% of the vote ... coincidence.  I think not.

Wed, 02/09/2011 - 11:07 | 946247 Hephasteus
Hephasteus's picture

Correlation and causation merge yet again in wedded bliss.

Wed, 02/09/2011 - 11:16 | 946279 LFMayor
LFMayor's picture

That 52% is what we're going to be eating to survive, since big agra will fold when the oil stops being refined. That's the end of corn for a while.
But we might not need them all for food, I remember reading that the Aztecs got by eating only about 11% of their population.  We could possibly take the surplus and harness them to plows and cultivators, to grow non hybrid corn. Kick start the corn market all over again.

Wed, 02/09/2011 - 11:19 | 946300 Dapper Dan
Dapper Dan's picture

You are so sick... sick, sick, sick..................................

um. pass me a breast will ya.

Wed, 02/09/2011 - 11:33 | 946340 Rusty Shorts
Rusty Shorts's picture

"I gnawed off a limb - I'm not saying whose..."

Wed, 02/09/2011 - 11:34 | 946346 robobbob
robobbob's picture

shout out to Jonathan Swift's Modest Proposal

Wed, 02/09/2011 - 11:37 | 946354 countryboy42
countryboy42's picture

So, are vegetarians considered free-range humans?

Wed, 02/09/2011 - 14:26 | 947021 velobabe
velobabe's picture

i some times eat my own skin. not much.

Wed, 02/09/2011 - 11:20 | 946282 LFMayor
LFMayor's picture

Duplicate...  I have now exorcised the foul spirit from my laptop with the blessed refridgerator magnet.

Wed, 02/09/2011 - 10:40 | 946127 Rogerwilco
Rogerwilco's picture

Enchirada

Wed, 02/09/2011 - 11:08 | 946255 pods
pods's picture

Priceress!

Wed, 02/09/2011 - 12:41 | 946605 jus_lite_reading
jus_lite_reading's picture

Fly lice and colin dogs

Wed, 02/09/2011 - 10:40 | 946130 colonial
colonial's picture

Its all the evil speculators Tyler...how much longer will we have to wait for a House or Senate AG committee hearing...its like oil before the 08 crash.  Maybe someone will ask Ben about this today

Wed, 02/09/2011 - 12:05 | 946464 pan-the-ist
pan-the-ist's picture

How high can they push the price of corn before people bail and start eating dirt instead?

Wed, 02/09/2011 - 10:41 | 946135 firstdivision
firstdivision's picture

Corn opens up limit up, and CSC takes a kick in the balls. 

Wed, 02/09/2011 - 10:42 | 946136 papaswamp
papaswamp's picture

...as governments panic and begin to hoard worried about future uprisings.

Wed, 02/09/2011 - 10:41 | 946137 Jason T
Jason T's picture

am planting corn this year.  Better buy another 50 lb bag of flour soon too.

Wed, 02/09/2011 - 10:56 | 946199 Sudden Debt
Sudden Debt's picture

Keep me informed how the planting of that flour went :)

Wed, 02/09/2011 - 11:45 | 946391 TheDriver
TheDriver's picture

After two years of growing corn, I vowed never to plant the weed in my garden again. It's a heavy feeder, pests love it, and it provides less nutrition per square foot than many other veggies. I'll have to try planting sack of flour this spring. Thanks for the idea.

Wed, 02/09/2011 - 12:59 | 946675 dwdollar
dwdollar's picture

Corn provides more bushels/acre than any other grain.  Beats wheat about 3 to 2.  But, it does require a lot of fertilizer.

Wed, 02/09/2011 - 10:41 | 946139 Misean
Misean's picture

So much for using cobs to wipe my ass...

Wed, 02/09/2011 - 10:59 | 946210 papaswamp
papaswamp's picture

go roman and use vinegar and a sponge on a stick.

 

Wed, 02/09/2011 - 10:44 | 946150 umop episdn
umop episdn's picture

Soon, in a market near you...plastic corn and 'meat' that makes Soylent Green seem like a luxury.

Wed, 02/09/2011 - 10:57 | 946203 Sudden Debt
Sudden Debt's picture

You can make your own soylent green you know?

 

JUST BUY A GUN AND A BLENDER AND INVITE ALL THE OLD  PEOPLE IN YOUR STREET FOR COFFEE!!!

Wed, 02/09/2011 - 11:10 | 946262 pods
pods's picture

Hmmm, got guns and a Vitamix.  Thanks for the idea SD!

pods

Wed, 02/09/2011 - 11:03 | 946215 Agent P
Agent P's picture

"Soon, in a market near you...plastic corn"

Check it out:

  1. Start with oil
  2. Use oil to make plastic
  3. Use plastic to make plastic corn
  4. Use plastic corn to make ethanol
  5. Blend 10% plastic corn ethanol with 90% gasoline made from oil
  6. End result is pure gasoline

Think of the jobs this could create...of course we'll have to subsidize it.  Brilliant!!!  

Wed, 02/09/2011 - 10:47 | 946157 lizzy36
lizzy36's picture

Please leave the dirty oil sands to the Canucks, you brilliant yanks keep using upwards of 40% of your corn crop for fuel. Brilliant public policy. Just brilliant.

Also please continue to ignore the viability of natural gas as a fuel, otherwise one might have to question giving $7500 rebates to purchases of the Chevy Volt (how many has GE bought LTD).

Wed, 02/09/2011 - 10:55 | 946196 SWRichmond
SWRichmond's picture

+1.  Burning food is one of the stupidest things we've ever done.

Wed, 02/09/2011 - 11:04 | 946237 ColonelCooper
ColonelCooper's picture

Yes.

Wed, 02/09/2011 - 14:19 | 946989 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.

Wed, 02/09/2011 - 11:40 | 946367 LFMayor
LFMayor's picture

No, it's just weaponization of one of our greatest resources.  Just think, every sqeal of the tires in your muscle car is like you're burning a destitute for fuel!

This is what people deserve, we try to be nice, bring democracy, technology and all the good shit to them and they want to bitch about imperialism, whine about how we "tell them how to run their country".  Fine.  Now we'll play hard ball.  We've fattened up your populations for 40 or so years, got you beyond your means of self support.  Now we'll take the bad pill this morning and guess what?  You work for us now, or you don't eat.

Wed, 02/09/2011 - 11:00 | 946212 ColonelCooper
ColonelCooper's picture

Yeah, the corn crop we burn diesel to grow,,,, so that we can burn the shitty subsidized ethanol in our cars.  And eat plastic rice.

Wed, 02/09/2011 - 11:47 | 946406 TheDriver
TheDriver's picture

Not to mention all the damage ethanol causes to small engines.

Wed, 02/09/2011 - 13:23 | 946781 Chump
Chump's picture

What's with the references to plastic rice?

Wed, 02/09/2011 - 11:14 | 946271 Flakmeister
Flakmeister's picture

Corn to Ethanol is the U.S.s very own version of the Easter Island logging industry...

Wed, 02/09/2011 - 14:32 | 947042 velobabe
velobabe's picture

Easter Island was pretty incredible. loved the forest story.

Wed, 02/09/2011 - 11:25 | 946278 Flakmeister
Flakmeister's picture

Duplicate...

Wed, 02/09/2011 - 10:48 | 946161 CB
CB's picture

I was reading somewhere in the news yesterday that the poor in a province in China were being fed plastic rice.

Wed, 02/09/2011 - 11:06 | 946251 Sudden Debt
Sudden Debt's picture

It's been going on for a long time already...

problem is that they can't crap it out and that's the reason why they can't keep their eyes open...

 

THIS IS BETTER:

FAKE EGGS!!! AND THEY ACTUALLY EAT IT:

http://www.hoax-slayer.com/fake-eggs-china.shtml

Wed, 02/09/2011 - 10:49 | 946166 uhb
uhb's picture

It's probably not Fortran but Java.

Wed, 02/09/2011 - 13:15 | 946758 CynicLaureate
CynicLaureate's picture

If they still use FORTRAN, that would explain the flash crash.

Wed, 02/09/2011 - 10:49 | 946168 A Man without Q...
A Man without Qualities's picture

This is clearly bullish for Apple - when food's too expensive, they'll spend the money on iPads instead

Wed, 02/09/2011 - 10:56 | 946200 A Man without Q...
A Man without Qualities's picture

There's actually a phrase in Chinese which is something like "swapping babies time" - it comes from when there was a famine caused by the Mongol invasions and people would meet in the town square to exchange their dead children for the children of other families, as you didn't want to eat your own....

Wed, 02/09/2011 - 10:51 | 946179 system failure
system failure's picture

I wonder if eating tree leaves will become  a delicacy......everything associated with corn cost too much now thanks to Uncle Ben, raising use of ethanol in gasoline, meat products that are grain fed raised, cereal, bread, etc.....

Wed, 02/09/2011 - 10:53 | 946187 gwar5
gwar5's picture

I'm stocked up on everything. I'm watching sugar prices.

 

Wed, 02/09/2011 - 10:53 | 946190 Life of Illusion
Life of Illusion's picture

Tax credits for ethanol sure worked expanding infrastructure in the Corn Belt. Now in the hands of few after 08, 09 bankruptcies.

Wed, 02/09/2011 - 10:54 | 946191 DonnieD
DonnieD's picture

Limit up - coming to a precious metals market near you.

Wed, 02/09/2011 - 12:15 | 946504 jelly roll
jelly roll's picture

no limits in pm markets....parabolic up

Wed, 02/09/2011 - 11:00 | 946209 bugs_
bugs_'s picture

Fortran - the time tested language of wisdom

Wed, 02/09/2011 - 11:01 | 946219 eigenvalue
eigenvalue's picture

Wait to see wheat triple this year. China's winter wheat crop is fucked. Utterly fucked..

Wed, 02/09/2011 - 11:05 | 946243 papaswamp
Wed, 02/09/2011 - 11:03 | 946231 Josh Randall
Josh Randall's picture

Corn and Fortran in the same story headline is solid

Wed, 02/09/2011 - 11:05 | 946245 topcallingtroll
topcallingtroll's picture

Tyler must be an old fart. No one programs in fortran anymore.

Wed, 02/09/2011 - 11:17 | 946289 Flakmeister
Flakmeister's picture

 He is implying that it is the old farts moving on the news....

Wed, 02/09/2011 - 11:18 | 946294 Hephasteus
Hephasteus's picture

You don't know shit.

Everbody complained to him about his sparc comments without realizing that sparc still owned huge and I mean huge market share in the enterprise sector. I just ran across a topic of discussion about developement of symmetric multiprocessing and what held it back the most was people sticking to thier sparcs and AIX.

Wed, 02/09/2011 - 11:39 | 946364 topcallingtroll
topcallingtroll's picture

Fortran programmers were hard to find even ten years ago. Now we know where to find those grizzled old timers!

Wed, 02/09/2011 - 11:51 | 946423 Hephasteus
Hephasteus's picture

Every single physicist astrophysicists and most engineers can program fortran. It's not a fucking fad. It's formula translater. Everybody who uses math heavily and extensivly uses it. Now get over that fact.

Wed, 02/09/2011 - 11:54 | 946438 topcallingtroll
topcallingtroll's picture

You are such a loveable old fart, Haphy!

Wed, 02/09/2011 - 12:04 | 946462 Hephasteus
Hephasteus's picture

Don't make me beat you to death with my turbo pascal floppies!!!!!!

Wed, 02/09/2011 - 20:52 | 948037 StychoKiller
StychoKiller's picture

Just wrap him up in paper tape, stuff a few Hollerith cards in, and push his head in a mechanical teletype machine!

Wed, 02/09/2011 - 11:20 | 946301 Flakmeister
Flakmeister's picture

 He is implying that it is the old farts moving on the news....

Wed, 02/09/2011 - 11:20 | 946303 Sausagemaker
Sausagemaker's picture

Security through obscurity.

Wed, 02/09/2011 - 11:49 | 946405 topcallingtroll
topcallingtroll's picture

GREAT IDEA! Then I shall be going back to punch cards.

Wed, 02/09/2011 - 11:48 | 946411 Krynn Economics
Krynn Economics's picture

Fortran 2008 was approved in September 2010. Someone somewhere is using it.

 

Fun Fact:

Fortran 2003 brought Object Oriented programming to the old gal.

Wed, 02/09/2011 - 11:52 | 946427 topcallingtroll
topcallingtroll's picture

The old gal has had a makeover but she is still the old bar floozy who has seen better days. Maybe she can hook up with COBOL. I see him around every once in a while too.

Wed, 02/09/2011 - 12:08 | 946472 Krynn Economics
Krynn Economics's picture

Oh she is a floozy I will give you that. I bet she would love to hook up with COBOL. He is sitting on top of billions of lines of installed code but he is busy with his life partner APL. Don't you question their love!

The problem is programming languages do not die. They go into a long tail where they are maintained in a undead like state due to the shortsightedness of management.

Wed, 02/09/2011 - 11:55 | 946439 Shameful
Shameful's picture

I'll raise you COBOL

COBOL for the 21st Century http://www.amazon.com/COBOL-21st-Century-Nancy-Stern/dp/0471722618/ref=d...

Just like the evergreen, the COBOL programming language has remained vibrant and full of life year after year. Today, COBOL is running a large number of the world's business data applications, and it's likely to remain a viable language in the years ahead.

Still going strong, can't keep an old man down!  If you listen closely when you open the amazon page you can almost hear the Duck Dodgers theme.

Wed, 02/09/2011 - 12:12 | 946491 Krynn Economics
Krynn Economics's picture

COBOL for the 24 1/2th century! Warms my heart.

Wed, 02/09/2011 - 13:56 | 946922 topcallingtroll
topcallingtroll's picture

Rotflmfao!

Wed, 02/09/2011 - 11:05 | 946239 topcallingtroll
topcallingtroll's picture

Lets take the peg war to the chinese and teach them a lesson they will never forget. Everyone go buy 200 lbs of corn and throw it out in the woods. I would rather the deer and turkey get it than the chinese.

Wed, 02/09/2011 - 11:46 | 946403 ColonelCooper
ColonelCooper's picture

I would certainly rather eat deer and turkeys than chinese people.

Wed, 02/09/2011 - 11:48 | 946412 topcallingtroll
topcallingtroll's picture

Chinese too tough and stringy.

Wed, 02/09/2011 - 12:30 | 946558 Agent P
Agent P's picture

Plus you're hungry again an hour after mealtime.

Wed, 02/09/2011 - 13:49 | 946889 topcallingtroll
topcallingtroll's picture

Lol! You made me snort coke up my nose! And not the good kind either.

Wed, 02/09/2011 - 13:49 | 946896 topcallingtroll
topcallingtroll's picture

Lol! You made me snort coke up my nose! And not the good kind either.

Wed, 02/09/2011 - 14:24 | 947013 DoChenRollingBearing
DoChenRollingBearing's picture

You guys are in good form today.

Wed, 02/09/2011 - 16:42 | 947448 Pope Clement
Pope Clement's picture

Are they easy to clean ?

Wed, 02/09/2011 - 11:12 | 946259 papaswamp
papaswamp's picture

Soy +0.3%

Wheat + 1.12%

Corn + 0.48%

 

 

Wed, 02/09/2011 - 11:17 | 946283 hugovanderbubble
hugovanderbubble's picture

Long THLD this in  much better than Corn:)

Wed, 02/09/2011 - 11:17 | 946287 small watcher
small watcher's picture

WRITE(6,FMT=A) 4HBTFD

Wed, 02/09/2011 - 11:18 | 946290 wherewasi
wherewasi's picture

 

Hmmm... China stocking up before attacking?

Wed, 02/09/2011 - 12:43 | 946611 jus_lite_reading
jus_lite_reading's picture

and filling up the 5000km underground storage facility

Wed, 02/09/2011 - 14:42 | 947068 Milestones
Milestones's picture

Walked around that facility under Beijing-rather amazing until ya find out that some of it is only 30 feet underground. Bunker busters would destroy it let alone nukes. Oops!    Milestones     

Wed, 02/09/2011 - 11:19 | 946299 Cardinal Fang
Wed, 02/09/2011 - 11:22 | 946313 fast99snake
fast99snake's picture

Corn hasn't opened yet! the quality of corn reporting here on ZH has been awful lately.

Wed, 02/09/2011 - 11:24 | 946320 papaswamp
papaswamp's picture

Floor hasn't but electronic has...

Wed, 02/09/2011 - 11:22 | 946314 JW n FL
JW n FL's picture

Corn has no nutritional value...

Corn is what? filler?

http://www.livestrong.com/article/18783-nutritional-value-corn/

 

Wed, 02/09/2011 - 11:26 | 946321 Rusty Shorts
Rusty Shorts's picture

Bingo

Wed, 02/09/2011 - 14:47 | 947087 velobabe
velobabe's picture

like carnations†

Wed, 02/09/2011 - 11:23 | 946315 wherewasi
wherewasi's picture

 

Thank God corn not included in core CPI

Wed, 02/09/2011 - 12:50 | 946650 jus_lite_reading
jus_lite_reading's picture

Thank God for Ben that anything we need is not included in the core CPI but that homes are. Light's out... Egypt is here

Wed, 02/09/2011 - 11:27 | 946322 iota
iota's picture

I prefer Mar11 Soy on a weekly for outright 'wtf?' hilarity.

Wed, 02/09/2011 - 11:37 | 946353 americanspirit
americanspirit's picture

Corn production is about to be nationalized - watch for it. At $6.80 for corn, and even with the subsidy dooubled, the selling price of ethanol would have to be @ $3.10/gallon for a standard 52MM GPY ethanol plant to break even.

If there was some way to post it I have a 2010 Purdue University spreadsheet for that 52MM GPY plant that makes the dynamics perfectly clear.

Wed, 02/09/2011 - 11:38 | 946360 TonyV
TonyV's picture

1/3 of corn produced in the US is used to make ethanol. The entire ethanol subsidy is a big scam. Drop subsidies for farmers, open the market for Brasilian ethanol and you will see the corn price plummet.

Wed, 02/09/2011 - 12:10 | 946485 Drag Racer
Drag Racer's picture

++

of course sugar would skyrocket if they removed the tariff from Brazil's ethanol.

funny thing is you can make 25-35x more ethanol per acre from algae.

Hey, we went to the moon on fortran. might as well send corn there too.

Wed, 02/09/2011 - 14:50 | 947097 Milestones
Milestones's picture

No-take the 1/3 and stop ethanol production and sell/trade corn for oil on a 10 year contract, THEN you pull the subsidy from the farmers but Archer-Daniels etc get the difference between the subsidized corn price and the oil contract; so the little guy gets to keep getting screwed.

Watch for the deal over the next year.      Milestones

Wed, 02/09/2011 - 11:41 | 946371 fast99snake
fast99snake's picture

no, electronic and pit are closed from 715-930

and it didn't open up anywhere near limit up, up but not close to limit.

 

Come on!

Wed, 02/09/2011 - 11:44 | 946388 topcallingtroll
topcallingtroll's picture

We dont want facts! We just want an excuse to duke it out in the threads!

Wed, 02/09/2011 - 12:13 | 946495 Drag Racer
Drag Racer's picture

wikivest showed corn at 688 locked at limit 15 up

Wed, 02/09/2011 - 14:09 | 946958 SheepDog-One
SheepDog-One's picture

Corn opened up 2.5%, I dont see what youre whining about here fast99snake.

Wed, 02/09/2011 - 12:04 | 946429 papaswamp
papaswamp's picture

Floor just opened...wowza!

corn +2.52%

soy +0.54%

Wheat + 1.06%

Wed, 02/09/2011 - 11:54 | 946435 Gordon Freeman
Gordon Freeman's picture

Fritos, bitchez! (the new gold)

Wed, 02/09/2011 - 12:13 | 946444 lieutenantjohnchard
lieutenantjohnchard's picture

i'll parse if for you. lieutenant john chard's family freezers are loaded to capacity with rice, coffee, butter, beans, wheat, flour, etc ...

Wed, 02/09/2011 - 12:17 | 946507 topcallingtroll
topcallingtroll's picture

Hey Tyler will you goose the natgas price next? I am all loaded up at 5.45 on margin. Yeah...I used again. That shit is addictive.

Wed, 02/09/2011 - 12:23 | 946529 Idiot Savant
Idiot Savant's picture

The US Grain Council, the industry body, said late on Thursday that it has received information pointing to Chinese imports as high as 9m tonnes in 2011-12, up from 1.3m in 2010-11.

 

WTF - a seven hundred percent YOY increase in corn imports? Why the huge ramp, hoarding?

Wed, 02/09/2011 - 12:42 | 946608 topcallingtroll
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Chinese are scared as shit what with memories of the cultural revolution and now the mother of all ghost city real estate bubble. Balls to the wall with those chinese peggers. They will destroy themselves unless they de peg.

Wed, 02/09/2011 - 14:27 | 947025 DoChenRollingBearing
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China gets to use some of their US$ too.

Wed, 02/09/2011 - 15:06 | 947152 topcallingtroll
topcallingtroll's picture

Hey DoChen..   'tsup, man?

Wed, 02/09/2011 - 12:54 | 946668 M4570D0N
M4570D0N's picture

My grandfather was among the first professors to teach FORTRAN at one of only 3-4 universities in the US, at the time, that had a computer science program in the 1960's. True story.

Wed, 02/09/2011 - 13:17 | 946763 ak_khanna
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The primary thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.

Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.

Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.

http://www.marketoracle.co.uk/Article24581.html

Wed, 02/09/2011 - 14:02 | 946939 topcallingtroll
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So that is the storyline these corrupt incompetent third world governments are telling their people. If you are going to troll here.from china then you need to register as a foreign troll. It only takes about four weeks longer than domestic registration.

Wed, 02/09/2011 - 13:48 | 946880 AZSovreign
AZSovreign's picture

Why do we even eat it, seriously why? you stuff it in your face chew and chew, swallow only to poo it out whole the next day. It has very very little nutritional value.

 

EDIT: Come to think of it, I prefer teh wax candy corn.. it tastes better anywyas... /sarc

Wed, 02/09/2011 - 13:47 | 946882 Grand Supercycle
Grand Supercycle's picture

My long term indicators still warn of significant US Dollar upside / Euro weakness.

This will affect commodity prices...

http://stockmarket618.wordpress.com

Wed, 02/09/2011 - 14:07 | 946951 SheepDog-One
SheepDog-One's picture

I'll believe dollar strength when I see it...$10 billion more fake dollars per day does not equal dollar strength. At the most you might see relative strength due to other currencies just being more worthless. Big deal.

Wed, 02/09/2011 - 14:39 | 947060 tmosley
tmosley's picture

Is it just me or is your analysis always wrong?  That or you use the wrong metrics.  USDX is WORTHLESS, since it is composed of 90% shitty devaluing currencies.

You trade your own advice?  How are you doing?  I'm up a little over 100% over my dollar cost average.  About 250% over my initial (major) investment.  Much more of this, and I might just retire to the gulch, or to a sunny beach somewhere.

 

Wed, 02/09/2011 - 15:07 | 947163 topcallingtroll
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dude...give us your trades ahead of time like I do.  What are you in now?

Wed, 02/09/2011 - 17:41 | 947601 tmosley
tmosley's picture

I have, many times.  ~95% physical silver, ~5% physical gold.  Been all in for over a year now.  Feels good man.  So far I've only cashed in a tiny amount to take the family out to a nice dinner at $25, and a bit more to pay for some renovations to my mother's house.

Trading is for suckers.  This investing stuff is easy. 

Wed, 02/09/2011 - 14:03 | 946944 Mike2756
Mike2756's picture

And fast food restaurants are up on this, lol. Go figure.

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