Seeking Alpha

The heatwave hitting the Midwest could wreak havoc on our corn crop, says Dennis Gartman....

The heatwave hitting the Midwest could wreak havoc on our corn crop, says Dennis Gartman. Without a good storm we may lose it, which could, in turn, ripple across a wide range of other industries as well. Corn is used in a variety of products from candy to renewable fuels. The key date to watch for is Independence Day. The Midwest needs a good soaker by July 4th to keep the corn crop stable. If not, Gartman warns, we're looking at a potential game changer for the markets.
Comments (21)
  • Van Hyder
    , contributor
    Comments (166) | Send Message
     
    One year it never did rain!
    25 Jun 2012, 08:10 PM Reply Like
  • Jason Tillberg
    , contributor
    Comments (1253) | Send Message
     
    Corn crop is tight to begin with ..

     

    I've got about 38 sweet corn planted in my back yard garden, going quite well thus far.
    25 Jun 2012, 08:33 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1140) | Send Message
     
    Hmmmm building an energy policy on corn (ethanol) rather than drilling we get: less energy, less national security, less food, and higher food prices worldwide. Typical government results.

     

    Another unintended consequence of the man-made global warming fraud.
    25 Jun 2012, 09:19 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3337) | Send Message
     
    Energy bill never built on corn, but the farm bill was. More drilling now in the past four years than the previous eight. But forget about corn used as fuel, a lot of it ends up in those 1000 calorie slurpy drinks the obese love to consume and drive up my insurance premiums. Corn is in everything, including drywall.
    You don't have to believe in climate change, you'll just be ill prepared for a possible future.
    25 Jun 2012, 09:36 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1140) | Send Message
     
    Option,

     

    I have no idea what argument you are trying to refute with this comment. Burning food for fuel is a misguided side effect of the fraud of man-made global warming. Ethanol mandates were put in place to "save the planet" and when you build a policy on a foundation of lies it crumbles under the weight of its own lies.

     

    This policy hurts the poor worldwide who live on few bucks a day even if we in the US don't notice it as much.

     

    From Scientific American (first link I could find):

     

    The U.S. Now Uses More Corn For Fuel Than For Feed
    http://bit.ly/MlrmM9
    "And, for the 12 months from August 2011 to 2012, the U.S. biofuels industry used more corn for fuel than domestic farmers did for livestock feed – a first for the industry. This significant milestone in the shifting balance between crops for food versus fuel shows the impact of government subsidies for the biofuels industry. And, it could represent a tipping point in the conflict between food and fuel demand in the future."
    Over the past year, U.S. farmers used 5 billion bushels of corn for animal feed and residual demand. During the time timeframe, the nation used more than 5.05 billion bushels of corn to fill its gas tanks. "

     

    This is an insane policy.
    25 Jun 2012, 09:54 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3337) | Send Message
     
    I totally agree - using corn is stupid. It was pushed by the farm lobby - congressmen in farming states are the ones who pushed it. Always stupid to cut into food supply for expensive fuel. Corn takes a heck of a lot of energy to grow - I know - used to work for a farmer that grew it.
    26 Jun 2012, 06:40 AM Reply Like
  • Robin Heiderscheit
    , contributor
    Comments (1913) | Send Message
     
    Although you need to Gartman with a grain of salt (pun intended I think) I can say from here in Iowa it is CRAZY dry.
    25 Jun 2012, 09:23 PM Reply Like
  • MICHAELIRISH131
    , contributor
    Comments (43) | Send Message
     
    Advertisers are putting everything in the pot as oil prices continue down. Texas refinery down for awhile as consumption drops mno big deal... Corn was high last year.. Saw a better price early this year probably will continue down til the 4th. Might be some jobs fo rain makers in forecast. Someone is being a job creator. Didn't Gov Perry higher a few a couple years back.?
    25 Jun 2012, 09:26 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3337) | Send Message
     
    I think he tried prayer services.
    25 Jun 2012, 09:28 PM Reply Like
  • avickrey
    , contributor
    Comments (38) | Send Message
     
    Disclosure: Dennis Gartman is long UAN in Vietnamese Dong terms.
    25 Jun 2012, 09:28 PM Reply Like
  • eabyrd
    , contributor
    Comments (311) | Send Message
     
    Seems like this predicament would less worrisome if we weren't burning our food as gas... Ethanol is one of the biggest scams in history.
    25 Jun 2012, 09:41 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8607) | Send Message
     
    Gartman is a nutcase when it comes to his regularly blown gold calls but he is right about this.
    25 Jun 2012, 09:42 PM Reply Like
  • zorrba
    , contributor
    Comments (407) | Send Message
     
    Only a moron would call corn a *renewable fuel*. Solar and wind are, while corn is best used and described as FOOD. But when the corn lobby gets billions in corporate welfare over the years at the expense of the TAX PAYER to make ETHANOL, then a propaganda term like *renewable* will do.
    25 Jun 2012, 09:44 PM Reply Like
  • ByloSelhi
    , contributor
    Comments (177) | Send Message
     
    We've had several good soakers here in Southeast Iowa in the last week. Corn looks good.
    25 Jun 2012, 10:07 PM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    We're drownin' here, Minnesota, and the corn is doin' fine.

     

    Place your commodity bets accordingly.
    25 Jun 2012, 11:05 PM Reply Like
  • JohnLocke
    , contributor
    Comments (381) | Send Message
     
    Knee High by the fourth of July?
    25 Jun 2012, 10:28 PM Reply Like
  • HoeTamer
    , contributor
    Comments (186) | Send Message
     
    It's been this way for 8 years straight in eastern Missouri. Nice 5" tall corn stalks on the fourth of July, 100 degree temps and no rain means completely dead corn plants by mid-August. The drought has started a month early this year.
    25 Jun 2012, 11:19 PM Reply Like
  • Terry330
    , contributor
    Comments (867) | Send Message
     
    In Texas Rick Perry asked the population to pray for rain for 2 days in 2011. Seven months later it rained, too late to save any agg crop and many city water lakes.
    25 Jun 2012, 11:31 PM Reply Like
  • eabyrd
    , contributor
    Comments (311) | Send Message
     
    Seems totally irrelevant...
    26 Jun 2012, 02:38 PM Reply Like
  • rajan1
    , contributor
    Comment (1) | Send Message
     
    Dennis Gartman has a poor track record to be kind-his fund is down 15% while ES s Up 25% over the same period-wise to use him a contrarian indicator-I do.
    25 Jun 2012, 11:50 PM Reply Like
  • OptionManiac
    , contributor
    Comments (3337) | Send Message
     
    Crop reports come out this Friday - should be a busy day in Chicago financial district.
    26 Jun 2012, 06:42 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector