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Linn Energy, LLC (LINE) Message Board

  • rlp2451 rlp2451 Oct 4, 2013 10:42 PM Flag

    OT: Corn Prices Collapsing

    October 4, 12:55PM:

    Corn collapses

    A U.S. Department of Agriculture report released on Monday showed that the U.S. stockpile of corn was higher than expected, causing a sharp selloff. In the aftermath of that report, corn declined to $4.35 per bushel, the lowest price since 2010. The report confirmed that the U.S. is no longer perilously short of corn as we were last summer when prices topped out at $8.06.

    Corn’s decline is certainly painful for farmers who produce the grain but is welcome news to end-users like ethanol producers, livestock feeders, and food manufacturers who all benefit from lower prices. In the coming weeks, market participants will be warily watching weather and final yield estimates for indications about the size and health of the corn crop being harvested this fall.

    As of midday Friday, corn for December delivery was worth $4.40 per fifty-six pound bushel.

    The government shutdown that began Tuesday has had far-reaching effects for commodities producers and traders who depend on the federal government for statistics about the markets. As the standoff in Congress continues, market participants are bracing themselves for a lack of fresh data due to federal agencies’ closures.

    Among the reports that could go missing are updates on crop progress, tallies of domestic crude oil and natural gas supplies, export statistics, unemployment figures, and national price data on cattle and hog sales. Without this critical information, some markets may be forced to pare back trading until the underlying fundamentals are better known.

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    • Still 300% more than before the insane Renewable Fuel Standard Law Progressive corruption. But to a delude this is crashing. ;-)

      So of course this artificially high corruption price is insuring China will aid Latin America in chopping down forest to expand capacity.

      Prices will eventually crash. But not yet.

      Econ 101.

      Problem is the world will always be one bad crop away for chaos just as Obama caused with the Arab Spring food revolts.

      Progressives put their political corruption and delusions before hungry people when a bad crop occurs.

      It is why Progressive can not be trusted with power they do not have the character to wield.

      • 2 Replies to norrishappy
      • quiktripper Oct 5, 2013 12:14 PM Flag

        well i think you should visit evictwashingtondotcom to protest that!

      • Board members (five star credit to rlp for another outstanding posted message) always, just 'more silly talk' from the monkey talker...when he says corn prices are 300% more he is saying that corn should be $1.42 a bu,.,...nobody can show a profit growing corn at anywhere near that price and corn production would stop...

        That said, investors on this message board are here to make money, so 'listen up'...ethanol plants across the U.S. are now ramping up production because of a lot lower corn prices... a current record corn corp will make corn prices a lot cheaper for 'at least the next year'...

        Now is the time to buy stocks that will benefit from lower grain prices (corn) and those that produce ethanol...i.e. ADM, TSN are probably some good places to start (check out the YTD charts)....'cheaper corn prices' will hurt the longer term price of oil and natural gas (some) because it makes another source of fuel cheaper and more available...! Why fight the tape (???), invest in companies that will profit from lower grain prices (that is what I am doing)...! $tagg...!

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