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Corn Price Plunges To Lowest Since July 1, Hits Revised Daily Limit As Sellers Outnumber Buyers By 2000 To 1
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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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....
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!!!
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.
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.
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...
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.
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.
"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.
yeah, but farmers can sell a grain contract when they get green shoots, too, ya know!
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.
Yep, them tin-knockers in Everett really do miracles.
- Ned
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.
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.
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.
What has this to do with the price of corn futures prices ?
here's a shot: more corn is now produced for ethanol than eating. 911 was a pretext for oil invasions.
.
Yes, just like gasoline has followed the price of oil down. Like fuck.
I filled up for $3.09 this morning, cheapest its been in a quite a while.
LOL,
Sorry, it always makes me laugh. I filled up my small car yesterday and it cost me £54. £1.30 per litre. UK
Patience, it's going to be taken out and shot!
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.
Nah, Obummer will pull an FDR, and start destroying crops first.
"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.
Sure, GMO type.
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."
Cornholed.
Corn - Good and Good for you.
You call it corn, we call it maize.
http://www.youtube.com/watch?v=cuOlD0JZhM4
hA!
Monsanto calls it corn. we call it poison
love doritos www.silverrevolucion.com
Lowest price since... July? uh.. Oh noes?
It just took out the jan low. Might get a small bounce into next month then it's down to $5.
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.
Sure, people and chickens just stop eating overnight.
No more corn Bitchez. Don't need any.
And corn is crashing because........??
USDA stocks report.......revision to follow in January!!
Where's Beeks?
WHERE IN THE HELL'S BEEKS?!!?!?
Someone made a comment yesterday that, like gold, corn isn't backed by anything... the truth is out now.
Win!
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.
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.
Ya can't eat ... hey wait a minute, I CAN eat corn!
- Ned
But you can EAT corn.
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.
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.
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.
"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. "
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.
Clarence Beeks got the wrong briefcase.
Short term hyperdeflation followed by hyperinflation. Is that the plan?
Plan or not, it's something to be wary of.
yep
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.
Always happens in the perdition to Peak Fiat Currency.
Is Bernanke the sole buyer?
nothing like a shot of 'maize' to stop the inlationistas in their tracks
Corn got over valued and is correcting.. Good for reducing the absorbtion of higher input costs burdened by many small businesses such as restaurants.
You can't eat, er, corn.
unprocessed.
for the most part you are right you can't eat what's in the fields.
Should be good for ethanol. If you believe we should be burning food as fuel.
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.
You get plnety food from corn with the ethanol.
food may not be the best , but what the heck.
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.
laks on bloomberg tv now doing a reprise of his recession call
Corn Bitchezz!!!!
U.S. Dollar and Treasuries bitchez!!
Fiat Paper rules!!!
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.
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.
Got NFLX ?
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!!!!
texas toast baby!
water won't help now.
In 5 years they will be leaving there in the thousands.
over!
stilll time to sell it to the druggies down Mehico way.
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!!!!
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.
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!
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.
Yep good points.
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.
http://news.coinupdate.com/physical-silver-shortages-growing-premiums-rising/
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?
I hope you don't treat people
WTF listening to CNBC? how about channel 100 or 113
ten min dude. the rest is ZH. I think its useful to hear what they are trying to get people to think.
Maybe because Buffett now says he does not support the Buffett Rule, and won't endorse O's jobs bill.
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.
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.
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.
Deflation, bitchez.
Corn liquor baby...bring it on....I don´t have a job so I might as well drink.....ye hah
Is this general no-QE3 commodity collapse, or did somebody leak that the deficit super-committee has the ethanol subsidy in their sights?
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???
That would be great, no idea if its true or not though.
We should be burning it for fuel indeed then.
~~
it takes 8-10 calories of petrol to grow 1 calorie of corn using current methods. how's that for an economic multiplier?
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?
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?
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.
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.
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.
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.
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.
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!
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!
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.
Paging Jim Rogers... Paging Jim Rogers
You know, even Dr. Commodity himself gets it wrong from time to time.
Jim Rogers said we should all be farmers. He just did not say where. Smart man.
Fuck, fuck, fuck... First that fucking DoA report and now this. FUCK!! Should never have bought in to corn again. Fuck, need to sell....
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!
Nebraska wins
Wisconsin wins
Clearly this is god's work.
Cheese continues to go up.
Corn crashes.
It's an omen, bitchez !
Another nail in hyperinflation's coffin.
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.
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. http://www.indexmundi.com/commodities/?commodity=corn&months=360
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.
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.
http://www.responsibletechnology.org/
(Wonder if the price of Fuel Fleas from Fukushima will be going down once they start burning?)
http://rense.com/general94/jp25.htm
http://mdn.mainichi.jp/mdnnews/news/20110929p2a00m0na010000c.html
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?
Ha! Look at that, fuckin' Lloyd Blankfein junked me because I had the audacity to tell the truth.
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 ?
Wall Street has gone nuts!
Long the bernanke. Short China. Even short US formers???
Global famine sure would help depopulation and create war.
All good for the elite.
Bad news for Peak Population.
Bad news or good news depending where you're standing.
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..
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.
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.
Let's be plain, the volatility in corn prices has nothing to do with speculation. It's Peak CornTM.
And so ends Arab spring. Long dictators bitchez.