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Veteran Contributor

there is no surplus of grain

there is a lack of money in starving countries. Shame on any country that has grain in storage. 

  The problem is CBOT people who have nothing invested , no clue what it is like to invest borrow plant and hope for a crop.

I'm sick of people who have never gone hungry telling me what my crop is worth.

the only thing keeping crop prices low is the dollar when the DXY went below 80 corn went to $8.00 it is 98 now and corn is $3.20

 

lots of demand no matter what Chicago says!!!

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10 Replies
Veteran Contributor

Re: there is no surplus of grain

Plain and simple all these guys that are pricing grain 1 or 2 years in advance, guys that are using target pricing are driving the markets lower. If traders don’t have any paper grain to trade then the markets will go higher to get farmers to sell. There is a big grain robbery going on and every is getting rich at the farmers loss.

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Honored Advisor

Re: there is no surplus of grain

Maybe for a thursday night marketing thought

Whitesand I cant imagine anyone actually pricing production 2 years out.  That is not farmers.   Not in this economic climate.  Our corn ground went idle this year, government isn't getting any smaller so my costs won't go down, why would I lock in a loss two years out?

Isn't it spec grain or political contributions made expecting to absorb a loss well after the elections.  It is really cheap investment in a mission minded world.   Give a couple million to a Party and you might as well burnie it.... But loose a couple million of margin money and you can be part of the payback that the midwest deserves for voting against madam chairman.......    In an environment of zero regulation anything goes.

It is just pocket change for our west coaster billionaires who could take it as a tax deduction if they happen to have to pay taxes.  Or it is guaranting cheap grain well into the future if your a multinational grain company--- from a country that will pay through the taxpayers nose to keep acres planted.......  and their only one of two places in the world that produce most of the grain......   International, Industrial Agriculture is playing this game for amazing profits.

(Or.........it keeps the iphones profits flowing )

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Honored Advisor

Re: there is no surplus of grain

Target pricing has worked for 4 years now.......... but it is a self defeating process for sure.

Veteran Contributor

Re: there is no surplus of grain

Any relief we get is sucked up by the market >>>look at what happened as soon as Trump money was announced the "market " took it out of our pockets plus . 20 cents it is rigged

 

better off pulling all subcides then they Insurance co and Chicago cant steal them

 

I just want to quit

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Honored Advisor

Re: there is no surplus of grain

I have guys in talks this week.  They feel the same.  Looking at a future.   Most of the problem is not knowing what to do  

I need to have some answers and I don’t. 

I know several good farms down here that are backing off hard this year and hoping to survive.  The kind that have accountants involved.  (I still contend if no seed got planted from the Rockies to Lake Erie it would take usda 3 years to figure it out)

we are finding out how much life this old but newer equipment has.  And sadly using up resources for grain no one wants.  When there isn’t any it won’t rile anybody like threatening to stop their drugs at the border will.  China is not a problem. But we are.  Environmental  & endangered regulations may have been the stake through the heart for agriculture in their overall cost schemes.

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jd2745713
Friend

Re: there is no surplus of grain

You are absolutely correct! When I was a student in the University I took a Developmental Economics class and there had been a big World Bank study on hunger in the 1980s that we studied. The World Bank's conclusion was the same as yours; hunger is due to a lack of income, not a lack of supply. That might change in the future but for now, the issue isn't on the supply side.

We need to figure out how to put people to work doing productive stuff in an era of incredible machine driven production capabilities. I'm for building and erecting wind turbines and against employing more folks in the Chicago exchange...

Honored Advisor

Re: there is no surplus of grain

Spoiler
That last paragraph is spot on.  
Honored Advisor

Re: there is no surplus of grain

There is no surplus of grain........but there is a surplus of stupid when it comes to what happens in Washington DC.

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Veteran Advisor

Re: there is no surplus of grain

Would  some,  herbicide,   ready  wheat,  patented  embryo  ,   be  of  help  - ? 

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