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Trade Aviator President Andre Julian on the White House considering lifting the ethanol requirement and how it impacts investors’ portfolios.
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At this hour the White House says is yes it is looking at the possibility of lifting the ethanol requirement ethanol of course.
To make it requires corn Andre Julian is the president of trade aviator.
Pulled -- back in from California talking about what it means for your investments what's the trade here on very.
Well I mean if you if you look at what's going on without with the ethanol -- -- been around since 2007.
I think people have to remember that it's not responsible for the high priced corn prices what's responsible for the high corn prices is that drought.
That's what's responsible people have to separate those those two things so because of that if if you're looking at this story which you guys have been for a while.
Look at a company like Monsanto.
Look at a company like suggest that case you do the reason a symbol Monsanto.
They have genetically engineered.
Corn now what do you like it or not whether ethically opposed that are not.
It's a relevant the point is that -- in a situation where they're producing a product that is is genetically modified so.
It basically doesn't half -- Have a yield drop in the crop now because of a major drought right now I just -- -- tell you let me jump in its down about 2% to it she Austin picked up off the lows of the session -- it's up 28% year over year for Monsanto.
-- -- -- -- -- The help people make and brother -- so.
That's what what we're talking about here but there -- other -- you mentioned Syngenta let's talk about why you pick that one for example would you do it over Monsanto.
Nelson Jeddah was its just another example is a smaller version of you know of Monsanto and again it's just to be diversified there's an ETF that I mentioned it's -- I laugh I'm sorry but move them although it's a movie TF and and basically.
You know that that's a diversification of a lot of these agricultural company -- if you don't just wanna pick a stock like months Anderson -- you can go right into that.
And you mentioned that that.
In the earlier segment ABM yes I like -- M I think it's a good contrarian play because again it's down today.
And if you look at it as corn gets multiple ADM gets multiple remember there are there one of the world's largest food producer but they're also.
One of the largest ethanol producers so I think that they can profit from both sides of that corn and there's there's an -- -- -- -- we should mention Anderson's ticker symbol AN DE but my question here is if the White House says.
What were considering it than they eventually say yes for now we will lift the ethanol requirement.
Do these stocks get hurt or do you buy on the debt.
Well that's why you know I'm looking at the Monsanto this -- -- ADM's dollars in the ones remember if we if we jump right in on this news and we only trade the news it's it's tough battle because it might have to get right out next week in the headlines -- But these are are based on.
The price of corn and they're based I would rather than on the on the mandate and that's what I'm trying to help people separate is the mandate has been there if they change the mandate.
It's irrelevant because the price of corn is high because of this -- -- And so they're looking at companies and withstand these type of events in the future these of the company's ago to.
Andrei Chilean president of trading aviator thank you very much for your perspective good to say.
