View Full Version : Record rains dampen crops in US midwest

13th June 2008, 08:50 PM
(automatically updated/inserted from The Big Biofuels Blog)

Record rains are dampening hopes for the harvest in the US midwest (http://www.icis.com/Articles/2008/06/12/9132131/record-rains-dampen-crops-in-us-midwest.html), according to my colleague David Rosen on ICIS news.

(Disclosure: I work for ICIS: About ICIS (http://www.icis.com/StaticPages/AboutUs.htm))

The piece is written for two big issues: fertilizers and food. It misses a third, biofuels. If the crop is bad then the price of corn will rise, if the price of corn rises then the economics of non-integrated ethanol producers is going to look pretty shaky (if it doesn't already).
If you want to hedge your biofuels position, it might be a good idea to buy into fertiliser firms (OK so I don't do stock recommendations being (a) unqualified and (b) not a bookmaker (http://www.icis.com/blogs/biofuels/archives/2008/06/are-ethanol-stocks-good-bargai.html)) but the capitalisation of fertiliser firms has been growing nicely over the past year, according to David's piece.

More (from The Big Biofuels Blog)... (http://www.icis.com/blogs/biofuels/archives/2008/06/record-rains-dampen-crops-in-u.html)