The price of corn has surged in recent weeks but there’s a potential catalyst that could erase gains and then some.
That's according to esteemed commodities investor Dennis Gartman, who is also a CNBC Contributor.
Although he doesn’t see the catalyst coming into the market right away, he tells us, it's inevitable and when it does come, it should send prices tumbling.
Gartman is talking about a meaningful change in the government mandate on ethanol.
“But that’s a political issue and this is an election year,” he explains. “Therefore I don't see it happening before the election.
Nonetheless, Gartman is convinced eventually the mandate will change.
“They need to do it. There is no reason to put the meager amounts of corn that we’re getting into gas tanks. I wouldn’t be surprised if it happens the very next day, after the election.”
And Gartman says when that day comes, “it will be manifestly bearish for corn.”