Making ethanol from corn may have been the dumbest idea in the history of mankind, but even without bio-fuels agriculture prices are tied to the price of energy due to transportation costs. As long as energy keeps flying higher I suspect food will do the same. I wonder how much of the recent surge in agriculture and energy prices is related to fed encouraged speculation via low interest rates and the falling dollar.
After seeing this video and noticing all the headlines I thought the agriculture commodities must be making new highs again but I was wrong. The Corn, Sugar, Wheat and Soybean tracking etf DBA hasn't made a new high since late February and is still consolidating after a major run. It actually looks about ready to resume the uptrend soon, see below.
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