Bloomer Posted 21 March 2007 Posted 21 March 2007 The price of corn has doubled over the past 12 months or so There are many reasons for this price spurt. The ethanol boom has created a sharp new demand for corn. The Department of Agriculture revised its estimate of the 2006 corn harvest downward by some 200 million bushels because of weather and other factors. There is also a smaller corn reserve on hand than usual  the smallest in a decade  which parallels shortages around the world. The futures market for corn is booming as energy companys buy up future harvests for ethanol production. Looks like the choices for the future will be your bio-friendly 4 x 4 or your cornflakes.
Phube Posted 21 March 2007 Posted 21 March 2007 But I like cornflakes... especially Crunchy Nut ones!!!
Steven Posted 21 March 2007 Posted 21 March 2007 Buy long dated Corn Options. If you have the money you could try trading Corn futures.
James. Posted 21 March 2007 Posted 21 March 2007 Buy long dated Corn Options. If you have the money you could try trading Corn futures. Both expensive unless you have a significant amount of capital and the chances are this news will already be priced into the premium on the options and the price on the futures contracts. You have to be extremely quick to beat the market!
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