As a result of a Congressional mandate passed in 2005 and expanded in 2007, over 40 percent of this year’s greatly depleted corn crop will be diverted from food and livestock, and instead be sold at the gas pump. We are trading our precious, fertile acres of farmland for a small dent in our oil usage. We are prioritizing our goal to reduce oil dependence over providing food to people.
The chief executives of the Big Three auto makers told President Bush they will work with the administration to cut oil consumption by 20% over the next ten years, CNBC's Scott Cohn reported.
John Quealy, vice president and energy technology analyst at Canaccord Adams, told CNBC’s “Power Lunch” that the immediate outlook for corn-based ethanol stocks is weak. “We think the risk/reward for corn ethanol is relatively flat given where food prices are right now per bushel as well as ethanol prices per gallon," he said.
Biofuels are fine -- but people still have to eat. Two analysts joined "Morning Call" to discuss investing in commodities through traditional as well as trendy strategies.
They both get up at the crack of dawn but what else do farmers and hedge fund managers have in common? Well, they'll both be closely watching the USDA crop report tomorrow, which will tell how many acres of corn and soybeans farmers expect to plant this season. Considering corn prices have soared 77% in the last year, how can you make money in the “farmer’s market?”
See what analysts had to say today about the market on CNBC.
Cramer’s new book, Mad Money: Watch TV, Get Rich, was written for one reason: to layout 20 important rules that help individual investors beat the big institutional money managers on the Street. Tonight, we highlight five just for you.
Sen. John Thune told CNBC’s “Squawk Box” that expansion of cellulosic ethanol will ease dependence on corn-based ethanol and help lessen the nation’s dependence on foreign oil, especially from the Middle East.“We’ve gotten very good at corn-based ethanol and it’s been a very successful story here in South Dakota and across the Midwest,” Thune, a South Dakota Republican, said Wednesday. “Cellulosic ethanol should expand dramatically the number of states that can participate in producing renewable energy.”
Corn may get all the press, but "the other ethanol" -- sugar -- is just one of the alternatives recommended by Jim Bower and Jeanette Young. The two traders joined "Power Lunch" to tout the "soft commodities" they favor. Young, an independent orange trader at the New York Board of Trade, "particularly" likes coffee. She told CNBC's Sue Herera that she is "thinking about" the approaching South American winter; as long as coffee doesn't drop below $108.30, she'll be bullish.
Brazilian President Luiz Inacio Lula da Silva, the leader of the continent's largest economy who has moved closer to U.S. President George W. Bush over ethanol output, swiped at Hugo Chavez, rejecting his fellow leftist's criticism of their plan.
Take a visit to BioTown, USA, find out what toymaker Mattel is doing and hear why Corporate America is going green for the wrong reasons.