Weekly Market Comments: 2/16/10
The holiday-shortened week, the weather and last week's friendly USDA Supply/Demand report have given the corn market the appearance of "base" building ahead of the USDA's Ag Forum event, to be held Thursday in Washington. The past five trading sessions have seen March corn bounce 15ยข off its 3.48 low. It will be interesting to hear how the USDA forum makes the correlation between corn planted acres and the expectation of excessive soybean acres.
Southern Illinois corn planting is 60 days away (if there are no wet planting delays). |
400% ROI on Government's Ethanol Investment
The ethanol industry has been criticized for being dependent on government subsidies and requiring too many resources to produce. However, the financial facts speak for themselves. The Government's 2008 $4.7 billion investment in the ethanol industry returned almost $20.0 billion in increased tax revenue and reduced farm program expenditures.
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Preview: The 2010 Outlook Forum
 The grain market's attention this week will be on the production numbers from the USDA's Agricultural Outlook Forum 2010. For those of us who have a direct interest in renewable fuels, there are at least nine speakers included in the two-day forum that should grab the attention of the ethanol industry. Also of interest at this year's forum are the topics being packaged around the subject of "sustainability". A month ago we commented on the fact that General Mill's Ron Olson spoke about sustainability at the National Grain & Feed's 2009 meeting in Kansas City. This year, the theme for the Ag Forum is "Sustainable Agriculture!" Industry participants that have the vision to recognize and harness the new direction of bureaucratic thinking will become the leaders of the renewable fuels industry. |
 Our own Brett Frevert and Karen Snow will be attending the Renewable Fuels Association Conference in Orlando this week.
In Orlando as well? Drop Brett or Karen a line to set up a meeting or grab a drink.
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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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