Two commodities that correlate to two of the stocks that I hold. Corn to BIOF and Oil to JBLU. Both obviously in these days of inflation fueled by the Federal Reserve and Bernanke, can go far higher.

Corn Planted Acreage Up 5 Percent from 2010
Soybean Acreage Down 1 Percent
All Wheat Acreage Up 8 Percent
All Cotton Acreage Up 15 Percent

Corn growers intend to plant 92.2 million acres of corn for all purposes in 2011, up 5 percent from last year and 7 percent higher than in 2009. If realized, this will be the second highest planted acreage in the United States since 1944, behind only the 93.5 million acres planted in 2007. Acreage increases of 250,000 or more are expected in Iowa, Kansas, Nebraska, North Dakota, Ohio, and South Dakota. The largest decrease is expected in Texas, down 150,000 acres.

Obviously the higher the price, the more supply will be called forth [planted] and just as obviously, this could take some time to work through.

Oil of course has it’s own set of problems, none of which are really being resolved currently. The really major one being Peak Oil and the inability to drive growth with a comparably cheap energy source.

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