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Last corn-related post of the morning: WSJ prints the kind of article you never see at the...

Last corn-related post of the morning: WSJ prints the kind of article you never see at the bottom, but occasionally find at market tops. Titled "High Corn Prices are Here to Stay," the piece argues far higher prices are needed to ration demand. If corn hits the cover of Time next week, get out fast.
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Comments (7)
  • expoliticaljunkie
    , contributor
    Comments (19) | Send Message
    whoever wrote this tidbit is a good writer. got my attention
    8 Apr 2011, 09:30 AM Reply Like
  • linenoise
    , contributor
    Comments (216) | Send Message
    We'll starve other nations to supplement our fuel supply. Fantastic.
    8 Apr 2011, 09:31 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
    "The Renewable Fuels Association confirm ethanol production does in fact increase the price of corn by increasing demand. It is cited as a positive economic effect for US farmers and tax payers, but does not elaborate on the effect for other populations where field corn is part of the staple diet. "FACT: By increasing the demand for corn, and thus raising corn prices, ethanol helps to lower federal farm program costs."



    About 40 percent of the crop is used to make ethanol as the government subsidizes the fuel additive and retail gasoline nears $4 a gallon

    8 Apr 2011, 10:19 AM Reply Like
  • Duude
    , contributor
    Comments (3403) | Send Message
    Though, I generally agree with the idea of playing contrarian to media reports, I can't think of a single sound argument for corn to suddenly be in plentiful supply.
    "Oh, look Obama has decided to eliminate Brazilian sugar ethanol tariffs. "
    "Oh,look worldwide farmers have managed to plant more than enough corn and none suffered adverse weather events affecting their crops."
    "Oh, look health experts have determined corn causes cancer."


    No, I don't see any good argument for corn to go down.
    8 Apr 2011, 09:46 AM Reply Like
  • woollyB
    , contributor
    Comments (1019) | Send Message
    That's the point, duude. At tops, there are always convincing, compelling fundamental arguments for prices to continue upward. The good arguments for corn to go down will all appear close to the next bottom in corn prices. This is why analysts who focus exclusively on fundamentals miss every single important top and bottom in every single market.
    8 Apr 2011, 10:37 AM Reply Like
  • Capitalist1
    , contributor
    Comments (54) | Send Message


    Indeed. An unholy alliance of treehuggers, led by the EPA, and corn state voters and politicians addicted to ethanol subsidies.
    8 Apr 2011, 09:48 AM Reply Like
  • Bio Insights
    , contributor
    Comments (962) | Send Message
    Run to the hills. Farmers can increase corn production, and have all the more incentive. Corn subsidies will keep supply higher as well
    8 Apr 2011, 07:38 PM Reply Like
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