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Veteran Advisor

The overnights look different

Gold and silver are shooting the moon and as I tyope this the dollar is at 74.13 testing the lows of two years ago agains. If it can close below them this week That is good for the price of corn going forward. (till it's not) SOybeans are also slightly higher.

Livestock is down in all sectors. That means that we are able to look at the perfect difference between the base commodities (Corn,soys, and wheat) and the value aded ag commodities like livestock. The world can afford our base products at alrming numbers, however the American consumer is at the breaking point on the food staples. The next 3 months ain't gonna be fun for the livestock guy.

 

Inflation is gonna race forward like those Texas wildfires now.  Of course thru the week we will have a sell off in one of the grains but all in all I'll bet for the week we are higher in all the grains. ( yes some of the credit for corn will need to be laid at the feet of planitng delays, yet I do not think that is the whole story.

 

WE got very warm yesterday afternooon. Up into the 60's it was dry!  This afternoon it is supposed to start raining. So I am gonna haul manure all morning while I can get across some fields.

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Honored Advisor

Re: The overnights look different

Hey Jr, the cat is out of the bag on inflation, shiney and glitter climb to all time highs.  What`s left in the toolbox to hold back inflation?  If the Fed raises rates, instead of interest on the national debt being a tiny sliver of the budget, with a rate not much above zero it will look like the size of the defense budget.  China is in the midst of dumping the dollar, it`s their payday and the United States is the commodity supermarket and with a cheap dollar we have the "clearance signs" out.  The liberals I argue with want more spending, I keep asking how this can keep up, but their headphones are turned off.  I really think we`re starting to see TSHTF...JMHO 

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