The global energy space has been dominated by discussions about fossil fuel alternatives in recent years, as there are a number of solutions to our addiction to these commodities. One of the most popular options has been the use of corn-based ethanol in crude oil, which decreases the amount of crude oil needed when the ethanol is mixed in. While it is not a one-stop solution, many see it as a sign of weening ourselves off of crude oil and working towards a more renewable resource [for more ethanol news and analysis subscribe to our free newsletter].
Bargain shoppers have arrived early on Wall Street ahead of Black Friday as last week’s brutal sell-off has left the marketplace scattered with ripe opportunities for seasoned veterans not shaken up from all of the volatility. Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data has also brought the bulls back to the equity front [for more economic news and analysis subscribe to our free newsletter].
Corn is most often thought of as a food. Perhaps if you’re an avid cook, you might even think of cornstarch or corn-based food additives, or perhaps those who follow the oil and gas news might think of ethanol. However, recent years have seen this dinner staple’s uses expand greatly. In fact, the bulk of corn that’s produced today does not go to food production. You’re probably using corn in ways that you don’t even realize as you go about your daily business. The countless uses of corn have prompted some interest in corn as an investable asset, and prices have surged in recent years as demand has increased [for more corn new and analysis subscribe to our free newsletter].
When it comes to futures investing, contango and backwardation are two phenomenons that traders should always keep an eye on. Backwardation is simply the process whereby near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time [for more commodity futures news and analysis subscribe to our free newsletter].