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Commodities
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white shadow
Posted 8/26/2015 14:36 (#4754487 - in reply to #4754449)
Subject: RE: Commodities



East Central South Dakota
It is the producer that keeps commodity prices close to production costs ( COP ). Everyone has a different COP and price gravitates toward the level of those who can do it the cheapest. Price encourages supply to overrun demand. Pretty much works the way it is suppose to. Problem with Agriculture is once that supply/production engine hits a full head of steam it takes a while to shut it down and dissipate the energy. Who wants to be the first to quit shoveling coal to the engine ? ? ? Sometimes we shovel till the banker takes away our shovel.
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