Key insights
- The author suggests a bullish outlook on corn (CORN) due to various factors: rising oil prices, potential ethanol mandates, fertilizer shortages, geopolitical tensions (Iran, Cuba), and anticipated hot/dry weather in the US. These factors are expected to drive up corn prices as a staple in both food and fuel production, potentially offsetting losses in other sectors during a period of global instability. The analysis focuses on supply-side pressures and their impact on commodity prices.
I started looking at CORN as an option for some profit while everything is down.
Supply chain issues, oil (fuel) prices, weather events, and fertilizer disruptions seem to have a direct impact on the price of corn. (Who'd of thunk)
So far we have oil (fuel) prices skyrocketing, talks of diluting US fuel with more ethanol (from corn) fuel shortages around the globe, fertilizers prices skyrocketing, more forces gather and joining the war, talks of invading Cuba. And we are in track for a hot dry summer in the usa.
The only thing lagging right now is corn. We haven't begun to see the effects of the oil and fertilizer shortage except higher gas prices. And in ny opinion , they are going to go a lot higher.
This isn't going to just blow over. We murdered the family of the leader of Iran. There's a zero percent chance this ends soon. Food and fuel are going to get crazy expensive and corn in a staple in both