All AGs are related to the price of energy. Either for the cost of fertilizers, or the cost of operating a modern farm tractor that holds 300 gallons of diesel fuel. Energy prices go up. AG producers are forced to raise prices, just to finance their operations. This is NOT price gouging. *** Corn is definitely renewable. Next year's crop will hopefully be better than this year. On the other hand, crude oil has an argument that it is renewable. Abiogenic petroleum origin. But very unlikely. So Crude is in limited supply. Next year's prospect is worse than this year. Crude in the $10-$40 range is likely only in the rear view mirror.
Borrowing is just the act of bringing future spending into today. We now have massive borrowing at all levels. Most of the by-products of corn are used to maintain human life (beef and poultry feed) People are going to be shocked at how high spending costs will go. As in "How bad do you want to stay alive?" For the big government people, this is where the saying is relevant: "When it rains, it pours"
Anticipating a close below 678’6 for the week Therefore I put my order to buy a Put on CORN Jan 20 2023 25$ put Limit to buy 3 @ 0.33 (MidPoint 0.30 - 0.35) Scenario is CORN trading @ 21$ by Jan 3 2023 Which is a 8 to 1 reward to risk. Let’s see.