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Veteran Advisor
roarintiger1
Posts: 1,601
Registered: ‎04-29-2011
0

Fire! Fire! Fire!..........

........in the grain markets.    Never fear.   The USDA predictions are only a couple of days away and as usual have the ability to put out the fire......The question is.......will they be running out of water (like the corn crop) to put out the smoldering market?  Or will they dig another well for a bigger supply?   Kindof puts a new meaning to the term "getting hosed" don't it?  We shall see.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Advisor
giolucas
Posts: 1,149
Registered: ‎06-25-2010
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Re: Fire! Fire! Fire!..........

Roarintiger,

 

With all due respect, if the farmers controlled the futures markets, we would have soybeans at $25.00, corn at $12.00 and wheat at $16.00.   Demand at those prices would force market to look for cheapest killing demand in the US.  Another way to look at the USDA is just another, checks and balances.

Veteran Contributor
oncearound
Posts: 105
Registered: ‎05-21-2010
0

Re: Fire! Fire! Fire!..........

uh, can't say i read where RT suggested that "farmers" control the futures market, maybe u could point that out for me? why is there a need for the USDA's involvement in production Ag to begin with? there was a time when the Gov. wasn't involved in Ag. 

 

why not let the market control the market? there are many markets in this country that has no Gov. intrusion and they seem to work. the 2014 budget for the USDA is estimated today @ $146 BILLION....granted about 83% goes to social programs....none the less, flush the Ag part and let us alone already!

Veteran Advisor
roarintiger1
Posts: 1,601
Registered: ‎04-29-2011
0

Re: Fire! Fire! Fire!..........

Thanks for the respect.....but I'm certainly not worthy......

 

"Demand at those prices would force the market to look for the cheapest killing demand in the US."    It didn't take prices that high to achieve your statement.

 

I'm pretty sure that if the markets would have gone higher this past winter, the rationing process would've worked better.... But I guess the markets really didn't need to go as high as they did, because we have plenty of supply left over.  The pipeline is still full, according to the USDA predictions.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Advisor
giolucas
Posts: 1,149
Registered: ‎06-25-2010
0

Re: Fire! Fire! Fire!..........

I was making a WHAT IF statement.  

Frequent Contributor
gregs3821958
Posts: 63
Registered: ‎12-09-2010
0

Re: Fire! Fire! Fire!..........

Would be interesting to get a list of markets where the government does not have any involvement. I suspect the term free market is more of a myth than a fact. 

Senior Advisor
kraft-t
Posts: 10,784
Registered: ‎05-10-2010

Re: Fire! Fire! Fire!..........

I don't know if I expect the usda to make a big switcheroo. It seems as though we had had those expectations before. Like the last three or four reports.

 

The markets are working the specs are pushing the grain markets lower while the buyers are bidding up to get the physical product.  The commercials know what corn and beans are worth. They are worth whatever they have to pay to beat the competition. If I could buy ample corn for $6.75 I wouldn't pay $7 either. And that folks is the real market. Those the buy the physical and wrestle with their competitors to get supply.

 

 

Frequent Contributor
childofthecorn
Posts: 49
Registered: ‎10-22-2012
0

Re: Fire! Fire! Fire!..........

giolucas, I have no respect for someone that says that the USDA is a checks and balances.  Lies and deceite maybe. How can you call someone that when they run the price of corn down to sub 3 dollars in 2010 and in less that 6 months it is over $6.50

Advisor
idalivered
Posts: 1,314
Registered: ‎05-13-2010
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Re: Fire! Fire! Fire!..........

giolucas, in your defense, $8 corn doesn't work. (except in my checking account) Right now, feeding $8 corn to cattle, hogs, chickens, or ethanol plants is not economically feasible. Endusers will find a way to NOT use $8 corn, whether it's alternative feed or just plain suspending operations or feeding to lighter weights.

Advisor
giolucas
Posts: 1,149
Registered: ‎06-25-2010
0

Re: Fire! Fire! Fire!..........

Thanks Ida,

 

Child of the corn,

Wasn't trying to offend anyone but  I guess I did.  By the way , a lot of things can happen in six months to take the price up or down. In fact it can happen in a day.  That is the market.