• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk

Ethanol’s Ripple Effect

April 3, 2007 by Thomas Mullooly

The US government has been subsidizing the research, development and use of ethanol. This is being done in an effort to provide an alternative solution to importing costly oil and gas for use here in the United States.

Some day, ethanol might be a great alternative.  However, it is having a “ripple effect” in the economy.  This is from the Daily Herald, a paper in suburban Chicago, on March 11, 2007:

The Department of Agriculture said recently that strong demand for corn from ethanol plants is driving up the cost of livestock and will raise prices for beef, pork and chicken.  Meat and poultry production will fall as producers face higher feed costs, the department said in its monthly crop report.

Ethanol fuel, which is blended with gasoline, is consuming 20% of last year’s corn crop, and is expected to gobble up more than 25% of this year’s crop.

The price of corn, the main feed for livestock, has driven the cost of feeding chickens, up 40%, according to the National Chicken Council.  The council says that chicken, the most popular meat with consumers, will soon cost more at the grocery store.  The industry worries the competition from ethanol could cause a shortage of corn.

The average price of corn, unchanged from last month, is $3.20 per bushel, up from $2 per bushel last year.

That is a 60% increase in the price of corn in one year.
This is Economics 101. There is far too much demand for corn.

P.S.
You would think that the corn charts would be skyrocketing.
But they have already made a significant move. However there are other areas where this news can possibly put money in your pocket.

P.P.S There have been more reports over the past few days that the “plantings” for corn are up tremendously, compared to last year. Sounds nice, but it’s not what you plant, it’s what you grow (and ultimately harvest) that really matters.  A few dry weeks(no rain) in late June-early July could do a LOT of damage.

Tom

Thomas Mullooly
Mullooly Asset Management LLC
Our Only Business Is Fee-Only Investment Advice
www.mullooly.net
support@mullooly.net

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Stock Market Comments

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.