Ag Prices: The Long Hemp, Short Corn Trade

A funny thing, government interference in markets. The US government, thanks

mainly to the fact that the Iowa caucus is politically very important, is doing

its best to encourage the market in corn ethanol. But front-page articles in

both the NYT

and the WSJ

have the price of ethanol plunging. Meanwhile, the Dutch goverment is cracking

down on the market in marijuana, and even George Michael is cutting

back on his intake, but the main visible effect is that marijuana

prices are up 20% this year. Maybe what the corn industry needs isn’t subsidies

but a few armed raids!

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