Given the complexities of the situation, it is sometimes difficult to determine the exact cause for market volatility. And, in the midst of the crisis, speculation can create fear and inaccurate assumptions. Only looking back on the situation after some time has passed, allows one to gain perspective.This quote from "Food and Fuel Issues," an article about Ethanol and corn production from the University of Illinois Extension, has relevance today. US corn farmers are blaming the handful of companies who changed the recipe/formula for some of their products, going back to sugar, for the recent market volatility that is hurting their bottom line. Who cares about health matters or what the consumers want, if the farmers of this great nation are feeling a pinch, then we need to act! Right?
Well, again, it is important to remember just how much corn this great nation produces. And it must also be remembered that corn is everywhere, just like Elvis.
The below graphic, also from this article, highlights how US corn is used by segment of the economy. What do you suppose is the smallest category?