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Center of IL | Talked to a friend of mine today that is intheknow on ethanol. He said with the price of ethanol, corn can hit $6 before its unprofitable. Some formula, sorry I cant remember it. I think the wild card is livestock. We are either poised for a huge exit from livestock or a huge run up in prices. I think it will be the latter. Tyson, Conagra, etc. must have a supply. Our corn supply is really getting pulled like taffy. Something has to break. Livestock, ethanol, bean ground? A really bad year fighting rust might do it. My guess would be ethanol going to other sorts of supplies but the cost of corn verses ethanol price is the determiner. Perhaps in the end its the price of oil that will be the determiner ! | |
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Corn.
