The markets are reeling from panic, with exception to corn.
Have a gander, will you?
On Jupiter’s Stone, we’re all doomed to starve, deprived from high fructose corn syrup. Most of you out there will be disheveled, unable to cope without the luxuries of faux maple syrup on your frozen pancakes. The truth of the matter is, corn is only meant to be burned for ethanol, not to be eaten at all. Today’s resilience lends to the idea that the entirety of the corn crop, mind you, is in shambles.
You were looking for a crisis of mammoth proportions, betting against banks and egregious natural gas conglomerates, yet the real black swan lurks in the farms where 96 million acres lay barren from drought, planting the seeds of dust bowl and famine, instead of sustenance.
As such, I take it upon myself to milk whatever is left from the farmer, through pivots and extraordinarily expensive irrigation systems. I sold out of MOS and RNF, based upon the laws of merit and caution. Howsoever, I still hold a full position in LNN– and would rather rub poison oak all over my face and body before selling out at these levels.
The good company VALMONT, ticker VMI, is slated to report earnings on the 24th of July. I suggest you listen to what they have to say, especially if you are long shares of LNN.
All in all, ag is my only play in the interim. I am not a buyer today because only fools, scoundrels and charlatans buy stocks when Spanish yields are at new highs. Nevertheless, I intend to reallocate a healthy portion of my cash reservers into this sector, into the blood.
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corn crop here in MN is bad. There’s a golf course nearby a corn crop and it looks like the corn has turned to wheat because of the weathering. I’m no farmer, but I would say the corn turning so brown is probably not a good sign for corn lovers. It’s been a hot summer across the land means it’s probably the as bad everywhere else.
Fact: MN was voted the dumbest state in the union.
hahahaaahhaha
What? When did it jump past Ohio?
Outpacing FLA?
People in FL are so old they still use “FLA” as their state abbreviation.
I am from Oregon and I resent that statement sir!
The entire midwest is retarded, but I’ve noticed that the farther south in the midwest you go, generally the less educated and dumber people get. By the time you get to Missisippi, arkansas and alabama they’re all playing the banjos and effing their cousins
Hahahaha
And NY is full of obnoxious assholes that weigh 250+ pounds and stuff thier fat faces with pizza.
MN farmers be running backwards through corn fields.
there’s corn everywhere and none of it’s edible… it’s all gone brown like shit. At first glance you say wtf there used to be corn there, now it’s wheat……
then you say… oh ya sure, you betcha, dontya know… If I shuck the corn, it’ll get brown shit on me rather than the usual green shit… and the corn itself is fucked
Monsantos seed are genetically engeneered to fuck us here in minny soooow tah
fantastic song!
My parents bought a bushel of corn in the hamptons this past weekend for $12! Clearly, the hamptons dont know about the drought.
I would bet $1million that they unknowingly purchased FAKE CORN, produced by FOXXcorn.
Interesting…how can I find out if that is the case? I’ll send you a pic on twitter of the bag the corn came in.
Hmm… this could be dire indeed…
rofl…Foxxcorn….that’s funny.
sent
I’m stuck in the midwest for the summer, right in the heart of the corn disaster. Yesterday Kroger had corn at four for a dollar. It would certainly get cheaper than that for a few weeks during the harvest, but isn’t this shit supposed to be priceless right now? Either Kroger is the most brilliant hedger in the world (actually a very real possibility) or the price is just plain wrong.
Needless to say I stocked the fridge up.
Stock up on corn cobs while you can!!!
And make sure the husks aren’t brown
Stock up on dry Cat and Dog Food!!!!
Mucho corn in every bite, it is the primary ingredient.
Sweet corn that people eat is not the same as feed corn that grows in the vast fields. Sweet corn is grown in much smaller plots which are probably irrigated. The feed corn is for cows, cereal and syrup. Watch for beef and staple carbs to go up in price.
I mean beef at the consumer level, not on the hoof. The fucktards buying hamburger at Walmart don’t know they’re just supporting a higher profit margin and the grocers can just vaguely blame it on drought.
wouldnt beef go down in price if the cost of feed is too high farmers will send light weight meat to market
That’s sweet corn. Not the same animal as the billions of acres of regular field corn used for the aforementioned high fructose corn syrup or feeding the beef, pork, poultry and dairy products you eat.
You guys need to learn a little about farming because we are all going to be doing it for bare subsistence real soon.
Can someone explain to me how corn and feeder cattle are very negatively correlated right now? I don’t know much about grains, but isn’t this the equivalent of a tech companies input costs going up and the end product getting cheaper? Doesn’t make sense.
Few years ago I had the same thought. Then someone explained when times get tough like this Farmer Brown kills all his cattle thus increasing supply. Increased supply = lower price.
Hmmm, that actually makes a lot of sense.
Thanks.
And that is exactly correct.
The farmer is selling his corn consuming animals left, right and sideways presently because he knows he will never be able to afford feeding them at the prices which will prevalent for the next couple years.
It raises the cost of his finished product so high that it won’t sell. Better to take a small bath on the price of the meat he is selling now rather than undergo a deluge of loss later.
And Haiburton says the guar shortage hurt their margins. Screw corn. Buy guar futures.
It rained over the weekend.
Corn looks good here in Upstate New York.
Man misuses Corn, used to feed the masses…instead Man uses Corn for fuel. What he giveth, he can take away…….drought!.
If you could put the entire cow on ice for several years, the price would certainly rise. You can’t, so the price of a cow today is a byproduct of current supply/demand equilibrium as it relates to beef, not the price of feeding a 2-year old cow today. Arbitrage over time is possible with non-perishables (to an extent), not so with perishables. As its stands, the rise in corn prices will likely lead to a supply shortage in the future (though it probably won’t, as the amount of corn fed to feeder cattle will likely be curtailed and substituted) on the feeder cattle side. In addition, the cost of feeding may be leading to ranchers culling portions of their herds, which would place downward pressure on feeder cattle prices.
good post. Covers everything I would have said.
everything cycles, the circle of life, Hakunna Matata and all that
$TLT day trade idea since $TLT hit high today.
($TLT) Peaked over key fib., will probably be sold some into the week.
Swing duration, channel still bullish to $135 (strict tech’s).
#FWIW
Nibble of $TBT for BRA, week trade.
Trade this and the Catholic Church may go “full-Lenin” (http://krln.ru/g3pd), effectively applying Novocaine to your frontal lobe as you numbly watch your money may go the way of Zimbabwe.
ethonol is shit… it fucks up your engine. anyone that uses that shit is a dumbass. what a fucking waste of corn. Good news is we can drive a fucking car at least until the engine breaks down…. bad news is we starve to death.
You probably use it without even knowing so who’s the dumbass. Regular gas contains 10% ethanol by federal mandate last I knew.
Here and there you can find a premium pump that is labeled no ethanol. Otherwise you are getting 10% in every tank.
Which makes me wonder………..does the DOE produce mileage ratings based on ethanol laden gasoline or do they use the pure stuff? My car gets a steady and predictable 1.2mpg more with non ethanol fuel as opposed to the diluted gas.
Still saying all of this is merely Oil Story. Iran is meeting tomorrow with low level to see if Iran + talks can start up again. Iran was saying it won’t close straight last night and some German Official was out saying Nuclear Power Ships are OK for Iran. These Slap Fest meetings are so hard to call, but money is coming out of Oil leading into this weeks meeting.
Btw AAPL’s earnings and Flash PMI tonight…so giddy happy to see big ugly stuff.
strait…not straight…I really should proof read…so word blind.
I’m trying to understand you, do you mean to say you like to be blind folded?
lol…Nymph Translation..The failed Iran Sanction Talks will be discussed tonight, with a very good possiblity that the talks could get a new date to resume talks. There has been a big “risk” premium in Brent when the talks stopped, that premium would come out if Talk Date is set….lol, for the blind fold, that is fun, but not during Market Hours.
For frack’s sake, who’s bringing the oil?
Hohoho, j/k.
Now I got it.
Yeah but KNDI is up!
Comments ibankcoin on ag stuff make for a lot of loling. Made my day FWIW.
Toilet’s backed up time to ship it to the farmers as manure….
ahh screw this, mario and luigi can take care of this mess.
lol