150/b Oil... what does this do to corn?

[TOM4CWB]

Charlie,

I see oil is $132/b this morning... beans and corn are up on positive upward movement on oil!

$8/bu corn... right now... is equivalent energy value of corn?

Corn worth more than wheat... is this at all unrealistic?

[cottonpicken]

I dont know about corn but you can kiss canola good bye.

[charliep]

Is that a positive good bye or a negative one?

Interesting times Tom4cwb. Short term biofuel will remain a priority although increasing ethanol processing capacity/blending capacity will be limiting factors. Also note that ethanol still gets a 51 cent/gal subsidy - this could disappear.

Am watching the corn/wheat price relationship myself but nothing to add other than eventually wheat becomes a feedgrain within North America and the rest of the world reacts to wheat production prospects outside North America.

On the $150/barrel oil, I think we have to watch for unintended consequences. Stag flation as others have commented on. Livestock industry that shrinks. For a region that exports 50 % of its agricultural production and is a long ways from its customers, higher transportation costs will take a lot more money out of western Canadian farmers bottom lines.

What is they. The Chinese symbol for opportunity and danger is the same.

[cottonpicken]

I would bet any commodity hanging around its early eighties levels is do for an increase.

Interesting note on china,Charlie.

I doubt to much time could be spent studing the middle kingdom.

Dealing with high transport costs will be better than producing something "they" dont need.

The day the yuan floats will be an interesting point in history.

[charliep]

Just noted comments about how current corn users in S.E. Asia are seeking out cheaper feeding alternatives including feed wheat and barley. Countries like South Korea will shift purchases to lower livestock feed costs. Don't in any way hope for crop problems/lower quality but if happens, will be good markets for feed wheat this fall. Suspect that mid quality wheats will also find their way into international livestock rations.

Times, they are a changing.