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Moorhead, MN | If global oil stays above $80 (gas $3+), I personally don't think $3 corn is the new norm. $3.50 cash corn would likely equate to e-85 being half the price of unleaded. To me it's just common sense that there will be increased global interest in corn-based ethanol at those economics.
Furthermore, we've added over 1 billion people in the world since the early 2000's. A growing global population and growing global meat-eating middle class, will put an intermediate-term (1-3 year) floor under the market IMO. We could definitely see lower prices into harvest and potentially next year but there are long-term tail winds for farming. But.......those with huge multi-year rent contracts might not be so lucky to experience the long-term....
Edited by MWASNick 8/2/2013 13:50
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Low prices cure low prices (ethanol)
