Here’s another piece of the mosaic revealing the Springtime switch to ethanol fuels as one of the stupidest ideas to come out of Washington…but if you’re running commodities, you’re going to look like a genius with the correct play.
Ethanol in this country is being primarily made from corn. Summertime is high-time for driving and high-fuel usage. Summertime is also when heat waves can scorch crops, corn being among them…and that’s what’s happening this Summer…corn crop conditions have worsened for the 4th consecutive week, according to the Ag people that watch this sort of thing.
The U.S. corn crop was adjudged to be 71% good to excellent in June, shucked down to 62% good in the middle of July, and was last rated 59% good by the U.S. Department of Agriculture as of July 23. This is the last week of July.
Friends, Romans, commoditymen, lend me your ears: What do you think the weather’s going to be like heading into August and September? And what do you think that's going to do to the price of corn?