Home » Stocks » ADM Commodities Bear Case Scenario $ADM, $DBA, $RJA, $CORN, $COW

ADM Commodities Bear Case Scenario $ADM, $DBA, $RJA, $CORN, $COW

Corn ethanol demand which is propped up by federal standards is creating artificially high prices. This is a political construct which makes food prices higher and hurts consumers. Also many motorists are not happy with the efficiency of ethanol. This will eventually dissipate and ADM will have a glut to contend with.

When trading commodities ADM does not have to ability move prices. Supply and demand economics dictate and ADM cannot control the fluctuations.

Food, agriculture and commodities have many variable and moving parts. Many external forces affect profitability.

George Gutowski writes from a caveat emptor perspective.