While we are digesting the $100/bbl oil, GS said that corn will be at $5 and Soybean at $10.Any comments?

ethanol ?

Yes. that is the reason cited by GS. I am more interested in their price targets...

That $5 figure falls out from an estimate of ethanol prices, ethanol refinery economics, and ethanol subsidies. It's a reasonable number, in my view, with a few caveats, among them the perennial agricultural concerns about weather conditions and yields. Of interest lately has been the narrowing spread between various grades of gasoline and ethanol (technically, a blending component), suggesting healthy ethanol supply. If fuel/blending demand doesn't pick up materially over the summer, we're likely to see a delay in new ethanol refinery construction and tapering of uitilisation rates by unhedged refiners. And yes, I've put on a trade based on that view.

Thanks for the insights.What is the story of soybean price? is that because more lands are being used to plan corn? BTW, could any GS folks kindly upload a Jeffrey Currie research report on these? Thanks.

QuoteOriginally posted by: GWBWhat is the story of soybean price? is that because more lands are being used to plan corn? Very likely so. The small farm I own is always planted with either corn or soybean, although it is not as simple as an either/or matter because soybean (I understand) replenishes the nitrogen in the soil, so it's probably a good idea to shuffle in a soybean season every now and then even if corn is more immediately profitable.

His knucke-dragging, neocon political/environmental views nothwithstanding, I think a great place to look for insight into commodities (esp. corn) is the daily Dennis Gartman Letter.

QuoteOriginally posted by: DavidJNHis knucke-dragging, neocon political/environmental views nothwithstanding, I think a great place to look for insight into commodities (esp. corn) is the daily Dennis Gartman Letter.Thanks. The Gartman Letter is for subscribed clients, which I am not. Any other resources or where I could get archives of the Gartman comments. Thanks again for all the help.

QuoteOriginally posted by: MarsdenQuoteOriginally posted by: GWBWhat is the story of soybean price? is that because more lands are being used to plan corn? Very likely so.that, and cannot soybeans also be used to make ethanol ?QuoteThe small farm I ownfarmer mars ?green acres is the place to befarm living is the life for me......Quoteis always planted with either corn or soybean, although it is not as simple as an either/or matter because soybean (I understand) replenishes the nitrogen in the soil, so it's probably a good idea to shuffle in a soybean season every now and then even if corn is more immediately profitable.ah, mars discovers crop rotation.

QuoteOriginally posted by: ppauperthat, and cannot soybeans also be used to make ethanol ?No, but soybeans can be used to make biodiesel. The relative amounts of starch, oil, and protein in the seed affect usefulness for biofuels under current technologies. (Until we figure out how to economically convert cellulose to alcohol, the fuel yield per acre will be modest)