On June 30 we were struck by the action in corn, "Surprising Corn Numbers".
Here's a reason to look not at the physical, the futures or the ETF (yes, there's an ETF for that) but rather at storage and logistics.
China, the world’s second-largest corn consumer, may give up efforts to be self-sufficient in the commodity and boost imports 10-fold by 2015 to feed livestock, said a researcher at Japan’s biggest grain trader.
Today's opening bell at the NYSE was rung by the muckety-mucks who run the Teucrium Corn Fund (NYSE Arca: CORN), a newly launched tracker of maize futures we last updated on July 1 ("The BULLISH News From Yesterday's Market").
CORN's launch timing couldn't have been better. Not long after its June debut, surprisingly low stocks and planting intention reports sent already-skittery maize prices soaring. There's no better advertisement for a long-only fund than a bullish turnaround.
While corn (and CORN) traders are enjoying their recent gains, however, long-suffering ethanol investors have been buffeted. Just when the horizon seemed to be brightening, ethanol crush margins were, um, crushed by the price spike.
The gross crush margin has sunk 20 percent since the end of April. Most of crushers' troubles coincided with corn's price rise, but weakness in another output—distillers' dry grains—added to their woes. DDGs are the fibrous remains of corn crushing, sold mainly as animal feed....MORE