was wondering is the price posted a true reflection of the market? What im getting at is that the pricefor beans dropped $.41 on monday does that mean world prices also dropped? Are beans cheaper than anyone else? or is it just some formula that sez for every bushel more or for every inch of rain or every nonhot day in august yield goes up then price goes down? after all arent computers doing the trading now so wouldnt a program have the capability to figure all that out? Do all the countries that export beans use our prices?
With wheat i have been reading that France has big quality and production issue and their prices have spiked while ours have more or less stayed the same or dropped? So im thinking its a regional issue. Also if the world produces more than it can consume and everybody has enough why would anybody buy anymore even if it was $0?
of course we do have loan rates to put an artificial bottom to keep it from going to zero. Agriculture cant change its supply in a months time like a factory can so when the board of trade sez whoa you seeded too much corn or too much beans or too much wheat it isnt a decision made in july but months ago.
Re: market prices
well hrw i'm getting the opinion that the market is......a farce........
it really doesn't matter what happens down on the farm (unless it could change the direction of the market).
it has become nothing more than "a game"..........
((reminds me of the movie "war games"...when the computer is about to set us on the unstoppable course to
WW3....but some young kid that was a nerd, was able to stop it, and the computer then ask,
"do you want to play a game"))
The market has no connection to the true "market"........those trading the commodities have no idea of cost of
production, nor the cost........it is just if it goes up or down....yet they are there (or the markets function) to
"discover" the true value.........how can a bunch of programed computers find such a point....they are trading
for their profit......it does not matter if it is $1 or $10 (other than market entry cost)
just like everything anymore........nothing is real......its all a show....and everyone is out for themselves
and to $%^@ with everyone else.
from local business.......to organizations.......to the t-ball field............
sorry for the depresing news
Re: market prices
Every time I bring it up.... the COP issue......... I get that round of "Na na na na naaaaa na--- the market doesn't care about COP".
But my point is the same....... Americans don't believe it but it is true........ COP stops production at some point.
Question is........... How many years will usda predict record yields and traders trade a commodity after most of its production has stopped....?
Trading stock and commodities is what we do, those of us who are too manly for facebook and solitaire at work and don't have a fantacy team... It is even more fun now that it has been disconnected from the presence of actual commodities...
Thank you all mighty leaders with a world vision and the glory of knowing what's best for all.
So lets all stay safe out there, and don't forget.......... "compromise"
Who will be the first bovine elected to the US Presidency. That will be a historic day.