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Corn Price Plunges To Lowest Since July 1, Hits Revised Daily Limit As Sellers Outnumber Buyers By 2000 To 1

Tyler Durden's picture


Back in April, when we first discussed the hike in daily corn trading limits from $0.30 to $0.40, we had some cynical observations, namely that "inviting not only more vol (read bottom line for the business) but more margin, the CME is exposing speculators to far greater impacts from margin hikes (and drops). Which of course means a far great capacity and ability to kill any commodity rally dead in its tracks." Well, there is no margin hike today (yet), although based on today's action we fully expect one. The reason, we are currently at today's down 40 cent limit, a price of $5.925 a bushel, the lowest since July 1, and by the looks of things it will get far worse: as the chart below demonstrates right now sellers outnumber buyers by a ratio of 2000 to 1. Expect this ratio to get even bigger once the CME hikes corn (and who knows what other commodity) margins as soon as today.

h/t John


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Fri, 09/30/2011 - 12:06 | 1726069 SheepDog-One
SheepDog-One's picture

HOORAY we'll soon be getting Cool Ranch Doritos for .20 cents a bag!

Still holding my breath waiting for margin hikes on equities futures...turnin real purple here....

Fri, 09/30/2011 - 12:07 | 1726090 Clueless Economist
Clueless Economist's picture

I visited the Flight 93 memorial in Shanksville PA over the weekend.

The gift shop was selling flight 93 key chains, tshirts and towels with "Let's Roll!" printed on them - all made in China and Viet-Nam..absolutely sickening!!!

Fri, 09/30/2011 - 12:23 | 1726181 tip e. canoe
tip e. canoe's picture

if i recall correctly, Todd Beamer's 'widow' trademarked "Let's Roll".    there's some great discussion out there in the ether on her house flipping fascinations if you choose to search.   sick indeed.

Fri, 09/30/2011 - 12:29 | 1726207 Abitdodgie
Abitdodgie's picture

The worst thing about flight 93 is that plane is back in service with AA , so all the people who "died"in the crash must of been taken off and exicuted by the American government.

Fri, 09/30/2011 - 13:27 | 1726521 slewie the pi-rat
slewie the pi-rat's picture

and back to corn prices

wheat went back into "backwardation" w/ corn last week: as "transitory deflation" hit the commodities, right on cue, wheat went into a fairly rare discount to corn, price/bu, and it reached almost $ -0.25 before "correcting" back to $6.08 (w) & $5.92 (c) or something thereabouts, now (41-cent swing);  but both are down roughly a buck, recently (seasonality?), as is soybeans, now down about $2

the SNB devalued the franc, and then the "deflation" started

causality, or correlation? 

i'm thinking the former, but my understanding of "devaluation" and "currency peg" isn't up to speed, and i'm lazy, too!  nobody leaked those bankster plans, boyz!  and the "unintended (?) consequences" are somewhat freaking amazing to my addled mind...

Fri, 09/30/2011 - 14:18 | 1726746 espirit
espirit's picture

Harvest time soon, so grains at deflated prices pretty much insures the farmers won't recoup costs associated with production resulting in increased borrowing from the banksters to remain in business.

This world is pretty much fuk'ed.

Fri, 09/30/2011 - 16:02 | 1726883 tip e. canoe
tip e. canoe's picture

not only that but their investment was most likely elevated this year due to the high cost of raw materials at the time of planting.    double screwed.

Fri, 09/30/2011 - 19:03 | 1727773 bid the soldier...
bid the soldiers shoot's picture

"As you wander on through life, whatever be your goal,
Keep your eye upon the donut and not upon the hole."

If we're screwed, let's enjoy it, like we used to, in the good sense of the word.

Fri, 09/30/2011 - 19:57 | 1727864 slewie the pi-rat
slewie the pi-rat's picture

yeah, but farmers can sell a grain contract when they get green shoots, too, ya know!

Sat, 10/01/2011 - 11:02 | 1728851 oldmanofthesee
oldmanofthesee's picture

Ah, for the old days! Five years ago, I could buy corn on December 1st, sell on June 12, for a tidy profit, each and every year. Thennnnn, the funds got involved.

Fri, 09/30/2011 - 15:32 | 1727087 New_Meat
New_Meat's picture

"The worst thing about flight 93 is that plane is back in service..."

Yep, them tin-knockers in Everett really do miracles.

- Ned

Fri, 09/30/2011 - 12:56 | 1726337's picture

No one on Flight 93 said, "Let's roll." Somebody said, "Roll it" in regard to using a catering cart to batter through the cockpit door.

It's as if  the real actions of the passengers weren't heroic enough for media consumption so a fictionalized account is promoted instead. Real heroes don't need to have their dialogue punched up. What a shame.

Fri, 09/30/2011 - 14:13 | 1726719 karzai_luver
karzai_luver's picture

They were not heroes , they knew they were going to die and they tried to stop it.


ANy human would do the same.


The bullshit that piles up around everything is sick.


RIP flight 93 peeps, at least the bastards can't torment you with their endless b.s. anymore.


Price of futes you say and you question bullshit. DO you trade 'em bro?

I like vasoline with my corn thx.



Fri, 09/30/2011 - 14:30 | 1726808 moonman
moonman's picture

Really Asshole?

How do you suppose they planned on flying the plane once they got control of it?

Yes they knew they were going to die but they also knew they could save thousands of lives by not allowing their plane to be flown into a building


By your definition nobody is a hero.

Fri, 09/30/2011 - 12:58 | 1726344 Fíréan
Fíréan's picture

What has this to do with the price of corn futures prices ?

Fri, 09/30/2011 - 15:20 | 1727047 DaveyJones
DaveyJones's picture

here's a shot: more corn is now produced for ethanol than eating. 911 was a pretext for oil invasions.

Fri, 09/30/2011 - 15:21 | 1727041 DaveyJones
DaveyJones's picture


Fri, 09/30/2011 - 12:08 | 1726095 Village Smithy
Village Smithy's picture

Yes, just like gasoline has followed the price of oil down. Like fuck.

Fri, 09/30/2011 - 12:10 | 1726108 NotApplicable
NotApplicable's picture

I filled up for $3.09 this morning, cheapest its been in a quite a while.

Fri, 09/30/2011 - 12:25 | 1726193 gojam
gojam's picture


Sorry, it always makes me laugh. I filled up my small car yesterday and it cost me £54. £1.30 per litre. UK

Fri, 09/30/2011 - 12:16 | 1726138 Mike2756
Mike2756's picture

Patience, it's going to be taken out and shot!

Fri, 09/30/2011 - 12:25 | 1726190 Quinvarius
Quinvarius's picture

All the oil interventions did was screw the refiners and other oil users who had already hedged.  They aren't going to eat that loss.

Fri, 09/30/2011 - 12:09 | 1726102 NotApplicable
NotApplicable's picture

Nah, Obummer will pull an FDR, and start destroying crops first.

Fri, 09/30/2011 - 13:38 | 1726567 Esso
Esso's picture

"HOORAY we'll soon be getting Cool Ranch Doritos for .20 cents a bag!"

Let me know when that happens, my man. My guess is, is that ConAgra, or whoever, might have something to say about that.

Fri, 09/30/2011 - 19:45 | 1727841 Cassiopia2011
Cassiopia2011's picture

Sure, GMO type.

Fri, 09/30/2011 - 12:15 | 1726074 gojam
gojam's picture

The Grapes of Wrath.

"Men who have created new fruits in the world cannot create a system whereby their fruits may be eaten. And the failure hangs over the State like a great sorrow. ...and in the eyes of the people there is the failure; and in the eyes of the hungry there is a growing wrath. In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage."

Fri, 09/30/2011 - 12:06 | 1726078 mayhem_korner
mayhem_korner's picture


Fri, 09/30/2011 - 12:39 | 1726253 Taint Boil
Taint Boil's picture



Corn  - Good and Good for you.


Fri, 09/30/2011 - 12:59 | 1726350's picture

You call it corn, we call it maize.

Fri, 09/30/2011 - 14:14 | 1726727 karzai_luver
karzai_luver's picture



Fri, 09/30/2011 - 15:27 | 1727061 DaveyJones
DaveyJones's picture

Monsanto calls it corn. we call it poison

Fri, 09/30/2011 - 12:06 | 1726079 choorles
Fri, 09/30/2011 - 12:06 | 1726082 Popo
Popo's picture

Lowest price since... July?   uh.. Oh noes?

Fri, 09/30/2011 - 12:21 | 1726173 Mike2756
Mike2756's picture

It just took out the jan low. Might get a small bounce into next month then it's down to $5.

Fri, 09/30/2011 - 13:05 | 1726389 espirit
espirit's picture

Anytime you see these drops on such bad crop data (floods,fires,droughts), you can bet SOMEBODY is frontrunning the action to knock the price down before the fireworks begin.

I'm on Tylers side with this one.

Fri, 09/30/2011 - 12:07 | 1726088 fdisk
fdisk's picture

Sure, people and chickens just stop eating overnight.

No more corn Bitchez. Don't need any.

Fri, 09/30/2011 - 12:07 | 1726089 dannyadornato
dannyadornato's picture

And corn is crashing because........??

Fri, 09/30/2011 - 12:09 | 1726100 Mister Potato Head
Mister Potato Head's picture

USDA stocks report.......revision to follow in January!!

Fri, 09/30/2011 - 12:51 | 1726313 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Where's Beeks?


Fri, 09/30/2011 - 12:12 | 1726104 nonclaim
nonclaim's picture

Someone made a comment yesterday that, like gold, corn isn't backed by anything... the truth is out now.

Fri, 09/30/2011 - 12:15 | 1726131 Motley Fool
Motley Fool's picture


Fri, 09/30/2011 - 12:23 | 1726179 Nascent_Variable
Nascent_Variable's picture

That damn Canadian reporter.  She's blown the lid off the whole thing.

I had to sell my house and my car today when I realized they weren't backed by anything.

Fri, 09/30/2011 - 12:39 | 1726255 disabledvet
disabledvet's picture

Haven't seen you in a while. Where u been hidin? Anywho no surprise. Oil companies will drive this price to zero if they can. They sense the danger of plunging natural gas prices and have fallen back on ye olde standby of "kill the farmer." cat's out of the bag so to speak since ethanol already the law. We're gonna see how real this slowdown is as plunging fuel prices either yields a recovery in the transport stocks...or not.

Fri, 09/30/2011 - 15:35 | 1727103 New_Meat
New_Meat's picture

"Someone made a comment yesterday that, like gold, corn isn't backed by anything..."

Ya can't eat ... hey wait a minute, I CAN eat corn!

- Ned

Fri, 09/30/2011 - 21:13 | 1727991 Bicycle Repairman
Bicycle Repairman's picture

But you can EAT corn.

Fri, 09/30/2011 - 12:36 | 1726105 SheepDog-One
SheepDog-One's picture

Corn...not backed by anything and makes investors nervous so they buy paper so they can sleep good, because thats backed by lowlife slimey slithering politicians and bankers.

Fri, 09/30/2011 - 12:13 | 1726113 Village Smithy
Village Smithy's picture

Because pork is a Chinese luxury food and pigs eat corn. Chinese pork consumption is about to start falling and the guys who rode the QE2 commodity wave from the beginning are cashing in, big time.

It may be time to short the ES for today, it looks like Tyler's piece on BAC is starting to get traction.

Fri, 09/30/2011 - 12:16 | 1726144 qussl3
qussl3's picture

And thats why they released some stock from the strategic pork reserve?

Not too sure about the China crash bandwagon, China may be really screwed up and completely ponzirific, but if there is one thing the Chinese can do is as long as they have food to eat, the ability to sustain collective delusions is unbelievably spectacular.

Fri, 09/30/2011 - 12:30 | 1726214 fdisk
fdisk's picture

"Chinese pork consumption is about to start falling"

Well it's quite appositive Pork consumption actually

rising in China:

"China’s pork production will continue modest growth, forecast at 52.5 MMT in 2011. In several production areas this year, higher output by large-scale operators is more than offsetting reported losses among backyard operations, where many farmers have reduced herd size due to disease and low prices in the first half of 2010. Moderate pork production growth combined with a strong domestic pork demand will support higher imports. Total pork imports (including offal) are expected to reach over 1 MMT in 2011. Not including offals, China’s pork imports are forecast at 480,000 metric tons (CWE) in 2011. Pork exports in 2011 are forecast to rise 19 percent to 330,000 MT, due to strong demand in China’s traditional export market. "

Fri, 09/30/2011 - 13:48 | 1726603 Village Smithy
Village Smithy's picture

Yes, I would publish that research to if I was long corn and I wanted to get out while the price was still under the QE2 influence.

Fri, 09/30/2011 - 12:44 | 1726280 SheepDog-One
SheepDog-One's picture

Clarence Beeks got the wrong briefcase.

Fri, 09/30/2011 - 12:07 | 1726091 SMG
SMG's picture

Short term hyperdeflation followed by hyperinflation.   Is that the plan?

Fri, 09/30/2011 - 12:09 | 1726099 Mad Max
Mad Max's picture

Plan or not, it's something to be wary of.

Fri, 09/30/2011 - 12:12 | 1726116 Motley Fool
Motley Fool's picture


Fri, 09/30/2011 - 12:24 | 1726184 agent default
agent default's picture

Something like that.  If we get plunging commodity prices and a strong down wave in the S&P Bernanke will scream deflation

and inject more liquidity.  I think that at some point the FED will not QE through treasuries, they will just go into any market and start buying stocks futures ETFs you name it they will buy.

Fri, 09/30/2011 - 12:27 | 1726204 koot
koot's picture

Always happens in the perdition to Peak Fiat Currency.

Fri, 09/30/2011 - 12:08 | 1726098 YesWeKahn
YesWeKahn's picture

Is Bernanke the sole buyer?

Fri, 09/30/2011 - 12:09 | 1726101 anynonmous
anynonmous's picture

nothing like a shot  of 'maize' to stop the inlationistas in their tracks

Fri, 09/30/2011 - 12:11 | 1726112 haskelslocal
haskelslocal's picture

Corn got over valued and is correcting.. Good for reducing the absorbtion of higher input costs burdened by many small businesses such as restaurants. 

Fri, 09/30/2011 - 12:12 | 1726114 buzzsaw99
buzzsaw99's picture

You can't eat, er, corn.

Fri, 09/30/2011 - 14:17 | 1726742 karzai_luver
karzai_luver's picture


for the most part you are right you can't eat what's in the fields.



Fri, 09/30/2011 - 12:12 | 1726117 Dr. Engali
Dr. Engali's picture

Should be good for ethanol. If you believe we should be burning food as fuel.

Fri, 09/30/2011 - 12:36 | 1726242 Abitdodgie
Abitdodgie's picture

Yes we should burn corn as fuel this is America keep those SUV rolling , fuck the starving they should get a job insted of sitting around " starving" all day, easy life.

Fri, 09/30/2011 - 14:18 | 1726752 karzai_luver
karzai_luver's picture

You get plnety food from corn with the ethanol.

food may not be the best , but what the heck.


Fri, 09/30/2011 - 12:14 | 1726127 dcb
dcb's picture

but krugman says it's supply demand and speculators have nothing to do with it. H's never wrong you know, if someone wants to send it to the man.

Fri, 09/30/2011 - 12:14 | 1726128 anynonmous
anynonmous's picture

laks on bloomberg tv now doing a reprise of his recession call

Fri, 09/30/2011 - 12:15 | 1726133 bill1102inf
bill1102inf's picture

Corn Bitchezz!!!!

Fri, 09/30/2011 - 12:17 | 1726150 RobotTrader
RobotTrader's picture

U.S. Dollar and Treasuries bitchez!!

Fiat Paper rules!!!

Fri, 09/30/2011 - 12:41 | 1726265 Ye Ye
Ye Ye's picture

Let me make this case in a more congenial manner.

Commodities like copper (and corn, and oil) are collapsing because 1) decoupling is a myth, and 2) China's landing is turning out not very soft (ditto for other BRICs).  This is dragging down the entire PM complex.  Meanwhile CHF and EUR have eliminated themselves as safe havens in the near term.  That leaves USD and US treasuries, and JPY and JP treasuries.  US treasuries currently carry the better yield.

Near-term passive tightening of US monetary policy and active tightening of US fiscal policy look to support the trend.

Fri, 09/30/2011 - 13:14 | 1726455 ActionFive
ActionFive's picture

That makes it sound like there is a market.

How about bankers hunting down fiat runners "deflation" -everything else is getting supported.

Have to make things nice for election season/next QE.

Fri, 09/30/2011 - 12:59 | 1726351 DOT
DOT's picture

Got NFLX ?

Fri, 09/30/2011 - 12:18 | 1726152 Mister Potato Head
Mister Potato Head's picture

Phantom 300 million bushels resurfaced in the stocks-in-all-positions report this morning. All is well in the Heartland! Burn more corn! Send water to Texas, Oklahoma and Kansas please!!!!


Fri, 09/30/2011 - 14:20 | 1726758 karzai_luver
karzai_luver's picture

texas toast baby!

water won't help now.


In 5 years they will be leaving there in the thousands.



stilll time to sell it to the druggies down Mehico way.


Fri, 09/30/2011 - 12:18 | 1726153 Mister Potato Head
Mister Potato Head's picture

Phantom 300 million bushels resurfaced in the stocks-in-all-positions report this morning. All is well in the Heartland! Burn more corn! Send water to Texas, Oklahoma and Kansas please!!!!


Fri, 09/30/2011 - 12:18 | 1726155 koot
koot's picture

Way too much trading is done on margin.  Total margin accounts out numbers non-margin by incredible factors and this during massive deflationary episode in credit.  Insane!  For example, Europe is in economic and political shambles which prompts money to seek safety as their so called leaders are like deer in the headlights.  This money goes into the perceived safety of US dollars and treasury instruments, which requires the Fed to accelerate their printing press to satisfy liquidity in Europe due to dollar shortage.  The world is already flooded with dollars, but in order to maintain globalization agreements the Fed prints even more.  The result is lower yield in treasuries and record busting increases in bond prices, which is readily gobbled up by the Insane in Washington to fund their ever increasing Ponzi. 

The World is suffering from Peak Fiat Currencies, which like an addicting drug it needs ever more to keep from crashing. 

Next stop, crash in fiat currencies and the emergence of non-fiat money as the only acceptable form of payment.

Fri, 09/30/2011 - 12:46 | 1726288 disabledvet
disabledvet's picture

Reread your history. Beggar thy neighbor is the Bernanke put. Next stop: protectionism! Just yesterday Senator Schumer and a Senator from Alabama both demanded China revalue it's currency. Deflation!

Fri, 09/30/2011 - 12:19 | 1726157 Mr_Wonderful
Mr_Wonderful's picture

Wheat, soybeans tanking as well. Cocoa is at a 52-week low, coffee at year to date low.

This is probably tanking due to extreme oversupply amid falling demand. Also, a strong dollar doesn´t help.

Fri, 09/30/2011 - 12:38 | 1726249 SheepDog-One
SheepDog-One's picture

Yep good points.

Fri, 09/30/2011 - 12:23 | 1726160 Quinvarius
Quinvarius's picture

I welcome the food commodity price interventions and the scarcity that will follow.  Perhaps they find a way to feed us paper digital food.  We will see if that works with silver first as the shortages from the current sale are starting to show up.



Fri, 09/30/2011 - 12:21 | 1726172 dr.charlemagne
dr.charlemagne's picture

My drive to work is my only 10 min of CNBC each day. For the last two days they have been clearly trying to talk the equities market down....bearish perspective on everything. Obviously, this is a big change from the usual permabull cheerleading sell-side bs. What gives? My guess is that the banksters are now hedged and know they won't get QE3 without a big selloff. Thoughts anyone?

Fri, 09/30/2011 - 12:27 | 1726202 anynonmous
anynonmous's picture

I hope you don't treat people

WTF listening to CNBC? how about channel 100 or 113

Fri, 09/30/2011 - 12:30 | 1726213 dr.charlemagne
dr.charlemagne's picture

ten min dude. the rest is ZH. I think its useful to hear what they are trying to get people to think.

Fri, 09/30/2011 - 12:43 | 1726273 Rodent Freikorps
Rodent Freikorps's picture

Maybe because Buffett now says he does not support the Buffett Rule, and won't endorse O's jobs bill.

Fri, 09/30/2011 - 12:30 | 1726212 Quinvarius
Quinvarius's picture

QE3 is coming in the form of 0% money to bankers who borrow to cover their losses.  The "free market" bankers are going to do Bernanke's dirty work for him.  The banks are firewalled from the rest of the economy now.  You can't kill a bank that doesn't have to report losses and gets free money.  But the banks do have to borrow the money to make margins or prop positions. 

Fri, 09/30/2011 - 12:33 | 1726220 SheepDog-One
SheepDog-One's picture

The big sell off will be the QE3 for the bankers, now positioned record high short...harvest those longs give em a good shearing, cook up the bull steaks...much to everyones shock and outrage when they see their 401K account statements, and it aint comin back.

Surprise, bitchez.

Fri, 09/30/2011 - 12:52 | 1726317 disabledvet
disabledvet's picture

The media has an interest in "no imperial entanglements." government isn't too large it's too effective. With the canard of "sanctity of contracts" in the trash bin the best they can hope for now is a civil war. All eyes on the peace process and how the media covers that one.

Fri, 09/30/2011 - 12:26 | 1726195 GoldbugVariation
GoldbugVariation's picture

Deflation, bitchez.

Fri, 09/30/2011 - 12:27 | 1726201 youngman
youngman's picture

Corn liquor baby...bring it on....I don´t have a job so I might as well hah

Fri, 09/30/2011 - 12:35 | 1726239 Ye Ye
Ye Ye's picture

Is this general no-QE3 commodity collapse, or did somebody leak that the deficit super-committee has the ethanol subsidy in their sights?

Fri, 09/30/2011 - 12:39 | 1726258 learning2
learning2's picture

Could it be that people know that most of the corn grown in the U.S. is GM and have reduced their intake? As is U.S. soy which is 95% GM????

Amazing what this GM food (?) does to one...fertility goes to zero within a couple of generations in chickens...Is this another influence in prices/demand, of course, other than the economic conditions as a result of Global Financial Terrorism???

Fri, 09/30/2011 - 12:46 | 1726289 SheepDog-One
SheepDog-One's picture

That would be great, no idea if its true or not though.

Fri, 09/30/2011 - 12:54 | 1726326 disabledvet
disabledvet's picture

We should be burning it for fuel indeed then.

Fri, 09/30/2011 - 13:42 | 1726569 tip e. canoe
tip e. canoe's picture


Fri, 09/30/2011 - 13:42 | 1726579 tip e. canoe
tip e. canoe's picture

it takes 8-10 calories of petrol to grow 1 calorie of corn using current methods.   how's that for an economic multiplier?

Fri, 09/30/2011 - 18:57 | 1727756 Rhodin
Rhodin's picture

Lots of folks know not to eat corn thats GMO....but how many are smart enough to avoid the chicken and beef that eat that corn?

Fri, 09/30/2011 - 13:21 | 1726299 thunderchief
thunderchief's picture

Great news!  Now when I wake up tomorrow, not a person in the world will be starving because corn is so cheap. 

I have never heard of such enthusiastic news.  Now we can run all our cars on corn.  And Eat Eat Eat, because it's cheap cheap cheap. 

No more Americans on food stamps either?  All airplanes will soon run on corn fuel.  Cheap cheap cheap.  All mining equipment run on corn.  gold and silver, cheap cheap cheap. 

Even if it takes a god awful amount of petro chemicals and diesel to farm that genetically modified Monsano crap.  It is cheap, as we are in a perpetual deflationary environment.  Everything is Cheap and getting cheaper.

Plunging corn prices mean the world is saved.  I hope everyone is as happy as I am, that now corn, which is in everything we eat shit and burn to stay alive, is cheap cheap cheap. 

Salmon and Tuna are save because we will feed them corn.  Cheap cheap cheap.  Public school lunches are saved.  Corn dogs for everyone.  Corn syrup anyone?  Corn TV dinners?  Corn stuff in stuff you never thought a kernal of corn could be in.  Corn in your hoe bitches ass.   You may have already seen that.  Corn?

Just like silver.  It is so cheap that everyone is backing up the truck, as now corn will create a tsunami of physical silver thats cheap cheap cheap. 

Soon, nothing you buy will cost anyting as corn has solved every problem in the world.  Why?  Well, Duh...  It's cheap cheap cheap.  Didn't I already say that?

Fri, 09/30/2011 - 12:54 | 1726311 Mr_Wonderful
Mr_Wonderful's picture

I doubt that the FED can expand the money supply futher. The ratio to GDP is at 17-18%, I believe - an all time high. They probably need to contract it by a third to fourth.

No more QE in the foreseeable future.

Fri, 09/30/2011 - 14:01 | 1726673 dr.charlemagne
dr.charlemagne's picture

Don't be silly. Who is going to buy 1.5trillion a year of new US debt? The middle class? China? Greece? give me a break. QE can not stop until the the financial system burns to the ground one way or another.

Fri, 09/30/2011 - 14:24 | 1726778 karzai_luver
karzai_luver's picture

it is not bought, just rented and passed around among the crowd.


Long as it never stops you are ok.


They will keep passing long after any on this board today are in the ground.


Fri, 09/30/2011 - 15:52 | 1727179 arizona11912
arizona11912's picture

Hi Mr_Wonderful:

Modern banking REQUIRES growth otherwise they can't service their debts. Since the economic system is not growing as fast as the media says it is. Research GDP computation: substitution effects, geometric weighting and hedonic modeling. Just like POMO has now coming back as discussed earlier this morning on ZH.

Bankers now have to make their dough by selling distressed bonds at a premium to the Fed to remain solvent. Then the Fed writes that “expense” onto the taxpayer. QE or similar monetary easing program will be unveiled before too long.

Fri, 09/30/2011 - 12:51 | 1726312 Carl LaFong
Carl LaFong's picture

It looks to me that the FED, through the CME and other exchanges, is trying to bring down commodity prices while the USD is getting a bounce so as to make it appear that inflation is low.  Every margin hike that depresses prices, even in the short term and especially while the stock market is in "correction" mode, allows them to print a lower phony-baloney CPI number.  This, in turn, will allow them to do QE3+ by pointing to the low inflations numbers and claiming that the inflation impact will be neglibile.  Ben's no dummy....just horribly misguided. 

Fri, 09/30/2011 - 13:05 | 1726392 Mister Potato Head
Mister Potato Head's picture

You might be dead right on this one partner. The USDA just announced that it will revisit some of the small grain numbers and report on it some time in November or January. The 300 million bushels of corn which has been lost in space and appears and reappears over the course of the last two years appeared again this morning. They're kicking the can down the road hoping that we have a heck of a crop to burn, feed, export next year! Better rain in the Plains first. If it doesn't then it's just like the Grapes of Wrath and with the Dust Bowl! Some day we may regret planting corn on all those western acres and using up all the aquifier resources. But, let's burn it in the interim and place sugar tariffs to help those in need!


Fri, 09/30/2011 - 13:05 | 1726395 Mister Potato Head
Mister Potato Head's picture

You might be dead right on this one partner. The USDA just announced that it will revisit some of the small grain numbers and report on it some time in November or January. The 300 million bushels of corn which has been lost in space and appears and reappears over the course of the last two years appeared again this morning. They're kicking the can down the road hoping that we have a heck of a crop to burn, feed, export next year! Better rain in the Plains first. If it doesn't then it's just like the Grapes of Wrath and with the Dust Bowl! Some day we may regret planting corn on all those western acres and using up all the aquifier resources. But, let's burn it in the interim and place sugar tariffs to help those in need!


Fri, 09/30/2011 - 18:40 | 1727729 SilverDOG
SilverDOG's picture

Sugar tariffs have increased significantly, cheaper, corn syrup substituted for sugar in food. Exceptionally so, in pre-made food and candy.

Corn syrup/sugars are cancers favorite food, sugar with weaker molecular structure.

MMMmm Cancer.


Fri, 09/30/2011 - 12:55 | 1726330 misterc
misterc's picture

Paging Jim Rogers... Paging Jim Rogers

You know, even Dr. Commodity himself gets it wrong from time to time.

Fri, 09/30/2011 - 13:05 | 1726394 thunderchief
thunderchief's picture

Jim Rogers said we should all be farmers.  He just did not say where.  Smart man.

Fri, 09/30/2011 - 12:58 | 1726348 The Swedish Chef
The Swedish Chef's picture

Fuck, fuck, fuck... First that fucking DoA report and now this. FUCK!! Should never have bought in to corn again. Fuck, need to sell....

Fri, 09/30/2011 - 13:44 | 1726588 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Next time consider trading options.  Coming from one who has had his head handed to him you will sleep better at night.  Good luck to you sir!

Fri, 09/30/2011 - 13:04 | 1726387 DOT
DOT's picture

Nebraska wins

Wisconsin wins


Clearly this is god's work.

Cheese continues to go up.

Corn crashes.

It's an omen, bitchez !

Fri, 09/30/2011 - 13:13 | 1726448 FoieGras
FoieGras's picture

Another nail in hyperinflation's coffin.

Fri, 09/30/2011 - 13:22 | 1726488's picture

Suppose that low corn prices force farmers out of the corn growing business. What happens to the price of corn next season? Inflation and deflation are yo-yoing. If the system becomes unstable enough it will collapse. At that point the dollar probably won't be worth very much.

In the end the dollar is an unbacked piece of paper. Not that I can tell you when the end will come.

Fri, 09/30/2011 - 14:19 | 1726755 Mr. White
Mr. White's picture

Prices are still closer to historic highs than they are to the historical average price. Farmer's will likely be happily planting from road to road and ploughing under the groves and old farmhouses.

Fri, 09/30/2011 - 14:26 | 1726792 karzai_luver
karzai_luver's picture

Very few farmers are forced out of anything.


The lone farmer went away decades ago.


Plus, if you have land you can get beenybucks no prob.


Fri, 09/30/2011 - 13:25 | 1726507 European American
European American's picture

Of course the price of Corn is going down. A minimum of 85% of all CORN in America is Genetically Modified, even the organic. The dangers of consuming corn and it's by-products, whether by humans or animals are off the charts. But who cares, 1 out of every 2 Americans is overweight and 1 out of 3 is OBESE.

(Wonder if the price of Fuel Fleas from Fukushima will be going down once they start burning?)

Fri, 09/30/2011 - 13:30 | 1726530 Esso
Esso's picture

Of course the price of corn is crashing, it's harvest time.

The futures market that was supposed to stabilize prices between the farmers and the end user, has morphed into a weapon to use against the middle class (read: dirt-poor) farmers, to benefit the big-corp outfits like ConAgra.

You don't really think the beanie-wearers would actually allow any benefit to to the non-chosen ones who actually work for a living, do you?

Fri, 09/30/2011 - 13:54 | 1726638 Esso
Esso's picture

Ha! Look at that, fuckin' Lloyd Blankfein junked me because I had the audacity to tell the truth.

Fri, 09/30/2011 - 14:05 | 1726693 DOT
DOT's picture

Heavy action in the Spring by Banksters making sure the "succession plan" was in place.

I have travelled and spoken to many across the corn country.

Almost a concensus that the next play is for the land.

Got cash ?

Fri, 09/30/2011 - 13:34 | 1726547 chinaboy
chinaboy's picture

Wall Street has gone nuts!

Long the bernanke. Short China. Even short US formers???

Fri, 09/30/2011 - 13:49 | 1726612 lolmao500
lolmao500's picture

Global famine sure would help depopulation and create war.

All good for the elite.

Fri, 09/30/2011 - 13:52 | 1726619 reader2010
reader2010's picture

Bad news for Peak Population. 

Fri, 09/30/2011 - 21:31 | 1728024 bid the soldier...
bid the soldiers shoot's picture

Bad news or good news depending where you're standing.

Fri, 09/30/2011 - 15:05 | 1726980 Lazane
Lazane's picture

 gave CB my report on this board month ago that 2011 upper midwest corn fields were bulging with large well developed ears,  seems the futures traders just discover what CB got a month ago. caw..caw..

Fri, 09/30/2011 - 18:47 | 1727733 cornflakesdisease
cornflakesdisease's picture

This makes no sense.  There is no corn.  The fields here in Texas are burnt and withered.  Ears of corn are half their normal size.  This makes no sense.  And, I'm allready using winter hay to feed my cows in hopes of a better price come Feb of next year.

Fri, 09/30/2011 - 23:32 | 1728195 Bicycle Repairman
Bicycle Repairman's picture

Corn can be grown in a lot of places.  It's been a good year for corn in New England.  We've got hay, too.

Fri, 09/30/2011 - 21:16 | 1727996 Bicycle Repairman
Bicycle Repairman's picture

Let's be plain, the volatility in corn prices has nothing to do with speculation.  It's Peak CornTM.

Sat, 10/01/2011 - 11:13 | 1728878 mkkby
mkkby's picture

And so ends Arab spring.  Long dictators bitchez.

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