Name:   MAJ USA RET - Subject:   Corn Futures are Up Date:   11/10/2010 9:07:51 AM

The USDA has slashed crop forecasts and warned of shortfalls in grains.  Chicago corn futures rose above $6/bushel for the first time since August 2008, before ending lower.  Again there is hand wringing over the prospect of a “global food crisis.” 

From FT.com:

“The USDA said corn yields in the US, the world’s largest grower and exporter, would be 154.3 bushels per acre, down 1.5 bushels from an October forecast that was also a sharp downward revision. At 827m bushels, stocks left over from this year’s harvest would be the lowest in 15 years. Record US ethanol production has added to demand.”

Uh... “Say again Last?”

“Record US ethanol production has added to demand.”

WHY are we fueling cars with corn?  It COMPETES with the food supply.  It DOES NOT REDUCE OIL CONSUMPTION.  Don’t believe me?

1.   Run your tank down to near empty. 

2.   Fill the tank with ethanol laced gasoline.

3.   Record the price and odometer setting.

4.   Run it down to empty again.

5.   Record your odometer setting.

6.   Calculate you mileage (miles divided by gallons).

7.   Calculate your cost (fill-up cost [from above] divided by miles).

8.   Repeat the process - but fill-up using ethanol free gasoline.

9.   Compare the cost and performance,

You will have made my case!