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| Kind of complex thing - low prices possibly means some gubamint $ flowing towards us since it's an election year. Won't be enough, but the guba will try to position themselves has savior - could the 5 year plan be far off? Fundimentally though, ethanol keeps oversupply from going completely out of control (price bottoming at $3 - cme?) and the promise of a 15% blend this fall could keep corn demand higher than expected. On the other side, the livestock industry is not whole yet. A few months of profits don't pay back 3 years of losses. There will be no hog expansion and cattle only had an expansion because they were at very low production levels. I'm not sure you can really call it expansion. There is no guarantee livestock prices will stay profitable and our fine EPA is looking to slap some sort of emissions tax on each animal - does this passed on the consumer or does it put further pressure on an already weak industry (as hsus and peta want it to be).
thanks,
Pat | |
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3.05 corn for 2011
