Investor612

Corn, Ethanol and Water

A reality check for captbob and the Brazil myth.

1. Brazilians, with all that sucar cane ethanol, drive less than 10% as many miles as Americans.
2. Brazil has a surplus of desperate labor willing to work 60 hours of back breaking and dangerous work a week for $50 a week to grow and harvest sugar cane.

To pretend that Brazil is an example of what's possible for The US utilizing sugar cane ethanol is total nonsense.

Agricultural Commodities: High Prices Here To Stay?

Long term the liklihood of high ag commodity prices is good. As BMO's Don Coxe recently said, "The growth in the midsection of the US comes from growth in the midsections of consumers in China and India," or something close to that.

Short term if Amereican taxpayers and consumers ever wake up and decide to end the ethanol fiasco prices of ag commodities and stocks could drop. Then buy the dip.