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Weekly Market Update: 1/20/10
 
Since the USDA's "final" crop production numbers were released last Tuesday, corn has dropped 50 cents.  Analysts expect no significant rally for near-term commodities prices.  However, for a perspective on long-term (repeat long-term) prices, please take a few minutes to listen to the comments of money manager Jim Rogers.  Rogers is very good at the macroeconomics of commodities.
 
New California Standards Shut out Nebraska Ethanol
 
California MapNew low carbon standards approved in California may shut Nebraska ethanol producers out of a major domestic market.  27% of Nebraska's ethanol heads to California and even more is sold to other west coast states who may adopt similar standards.  Critics claim the policy is based on outdated and unscientific figures.
 
Ron Olson on Sustainability
 
There are few grain industry colleagues still around from the Russian grain business of the 1970's. Most have retired or passed on.
 
Ron Olson in Milling and Baking NewsLooking back to his days with Continental Grain at the Minneapolis Grain Exchange, Ron Olson is probably the most highly regarded grain merchant still working from before the Staggers Act (rail deregulation).  To see Olson speak about "sustainability" before a national gathering of commodity dealers was eye opening.  However, as one reflects on how firms like Cargill have tried to add value to it commodity fungibility, it should not be surprising that the topic of sustainability would also be of importance to the renewable fuels industry.
 
What environmental facet of your business can you take the lead on before it gets incorporated in the "Wal-Mart Sustainability Index"?  Olson warns of the difficulties of quantifiying a product's "sustainability."
 
USDA Works Towards Sustainability
 
SARE LogoGeneral Mills' Ron Olson is not the only one thinking about sustainability. The USDA, in an effort to make production agriculture more profitable, has a nationwide funding program that seeks to move beyond traditional husbandry.   
 
About this Newsletter: CFO Systems sends out a weekly grain market update each Wednesday.  On the third Wednesday of the month this update includes an expanded look at the latest renewable energy and grain market news. 
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