OptionEye March 21st
Backing off again today. Did the rounds yesterday talking a lot about the Glencore purchase of Viterra. Not sure what your thoughts are out there but the feeling here was that it wasn't a bad thing for the market but some were concerned.
I guess the way that I think I put it best was to ask the pundits if they were able to buy an oil company 30 years ago knowing what they do about oil today would they?
T. Boone Pickens keeps talking about 'peak oil' but I argue that we could run out of corn before oil.
Re: OptionEye March 21st
On corn and oil, sure.
Corn ethanol produces about .25% of world net energy if you use USDA's most favorable EROEI estimates.
It consumes about 5% of total world grain after you put the byproducts back in.
It is an issue of relative orders of magnitude which are quite different- roughly 20:1 in this case.