Excerpt from Dennis Gartman’s exceptional and widely read around the world morning comment –
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The President raised some hopes for the corn market when he said that it shall be he and only he who will make any further decision regarding increased and mandated “blending” of ethanol into gasoline from the current 10% to something between 12-13%.
We cannot believe that the President would be unwise enough to actually make such a poor decision, for clearly corn based ethanol is a fuel whose time has long passed. However, this is a left-of-centre President, moving farther to the left-of-centre by the hour, and he is further in thrall to the ecology wing of the Democratic Party and it is they who believe in the efficacy of ethanol despite its expense, despite its net loss of energy, despite its corrosiveness et al. The ecological Left believes in ethanol, and we fear they will force the President to raise the blending mandates.
This would be idiocy on their part, but we must never underestimate the ability of the ecologically oriented Left to do truly stupid things.
If the President does acquiesce to the Left, this will be supportive of corn. If he makes that decision, we’ll have no choice but to buy corn and buy it aggressively. We await his decision; we fear the “bullish” worst.