CORN

Corn last week was limit up. In America and globally we have food stocks at 30 year plus lows. The expected harvest will come in below expectations and demand for corn based ethanol will come in dramatically above estimates as the rush to build these new facilities comes on line.

This is going to be very inflationary and will be effecting the cattle industry as well as the entire food industry. The short term enjoyment of relatively cheap energy sources is making a dramatic low right now and it will test the markets this summer and into the fall as the world narrowly focuses short term on Iraq and politics...like who is running for President!....

The world's central banks see this coming and are fighting the pending inflation by raising interest rates as London did last week unexpectedly. The leveraged hedge funds and private equity are not anticipating this......

China is breaking out to the upside as expected and again the western world does not fully understand their markets and their people....the global markets are in a major rotation.

Danny Boy seen here takes it all in as he is on guard!