ehoff - by definition: Homogeneous definition: composed of parts or elements that are all of the same kind.
Let's look at that word used in our current maketing system. All of the same kind. And see, here is where we are going to differ. It's not a homogeneous market. It's not composed of all the same kinds of investors. Almost every group out there is in it for a different reason. My issue, and contention, is that the funds that take in huge amounts of cash, now have the ability to steer the markets. And, I know, your going to say that's a good thing. No - it's not - not from what I have seen over the last 10 years or so. And the one paying the price is ultimately the consumer.
Let's talk about an unrelated to Ag commodity - gas and oil. We have had two major oil scares in my life - in the seventies and the one a few years ago. "Oh, we're running out of oil!" - and the markets took the price of oil to it's new all time highs. Why? Why did it. Gee - it don't look like we're out of oil at all. But yet, we got the price up to $4.00 to $5.00, people didn't riot, so it must've been OK. Now that crude is back to just over $90.00, has the price come back to where it was before it went up so high? Is it back to the $1.50 it was before? No. And the same thing happens with every, single market out there. That's my problem. Thats my beef, and it's why I will continue to attack the CBOT at every juncture. Is it their fault - no. And, that's the other thing. In this system, like the oil a few years ago when the government investigated the price of oil, guess what? There was no one to blame. It was just the markets doing what they do, and they cost all of us, all over the world. Don't talk to me about the sanctity of our markets. I'm not so stupid as to think these markets are set up for the good of farmers. They only care about one thing - moving the markets as much as they can, to make the most out of each move. I'm tired of it, because, in the end, one way or the other, we all pay.
You think the price of food is going to come down now that corn is lower? What a crock. It was just a ruse to move the price of higher in the first place, and the farmer was to blame. The blame needs to go to a greed driven futures market, that is now driven by more money that was probably ever intended to flow through it. If that isn't true, then how many times do we sell the same bushels of corn? And how many bushels of corn are now being traded, that only exist on paper. Want to make the market more real? Then we only trade the amount of bushels that we can produce. Period. When the bushels run out, the market gets locked.
Jen
