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Contributor

Corn puts

Thinking about 6.00 puts for around .20 just in case the epa decides to lift the ethanol mandate. If the weather stays for another week or two we will be in unchartered waters and I am concerned the powers to be will react rashly. Comments are welcome.

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13 Replies
Senior Contributor

Re: Corn puts

    It took  30 days for theChi town locals to figure out they had a drought .  It takes gov't 90 days to make a decision. Unless they are being shot at. Besides nobody is in Washingto until next week, Teusday at the earliest.

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Veteran Contributor

Re: Corn puts

Obama didn't get to the White House by making bad political decisions and to change the ethanol mandate could tank the markets.  He gets a very low percentage of the farm vote either way but if he did tamper with ethanol the only folks who would benefit would be the oil companies and they are in the Romney camp anyway.  High grain prices won't impact food prices until after the election.  The midwest is up in the air on who they favor and he wouldn't want to tip the scales in Romney's direction.  It's more likely that after the election we could see some action limiting exports or changing the ethanol mandate but I'm guessing that discussions have already taken place weighing the outcomes if in fact these grain prices set new highs.  The fact that Illinois is wall to wall corn and ethanol plants is in our favor.  Illinois politicians have significant influence with Obama.   Presidential candidates do better when the stock market is doing well and to limit exports or limit ethanol potential prior to the election could have a negative attitude on agricultural stocks like Deere, Monsanto, CNH,Dupont,etc.   I'm more concerned about what happens after the election.  By the time that happens, South America will be motivated to plant as much possible at these prices. 

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Honored Advisor

Re: Corn puts

This isn't good for a state has big debt issues to start with-----illinois. 

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Veteran Contributor

Re: Corn puts

Illinois has the worst bond rating of any state in the nation.  We're number one.

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Contributor

Re: Corn puts

I hope you are right but politicians don't always act rationalSmiley Happy

Honored Advisor

Re: Corn puts

brilliantly understated

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Veteran Advisor

Re: Corn puts

You really think that the guy who funneled a half billion into salyndra and other green enrgy things is goona pull the rug out from under the only green energy success story?

 

If you do I can sell you rain to! LOL

 

The mandate will stay. Livestock will die!

 

Now thats a green platform to run on.

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Honored Advisor

Re: Corn puts

Jr.,

 

This ones been haunting me today.  --------- It's the heat.

 

. He will do what he perceives to be most beneficial to the "guy"---politically and economically.  He will bring home the bacon for those who will be most loyal to him the longest------and cut them off when it serves his own desires.

The earth, "green", poor animals, the underprivileged, etc--------------all just a means to political support.

Salyndra just looked like a political positive.

 

I have no idea what he will do.  But the ruling class will not pass up an opportunity to reap the apparent political harvest.  

I remember the Carter 1980ish grain embargo and the Nixon wage and price freeze of the 1970ish time quite well-------

Political ignorance has no bounds.  

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Senior Contributor

Re: Corn puts

It's just to bad are government does not have grain reserves instead we send it to china so they can have some cushion to work with.
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