Posted 12/4/2016 07:27 (#5674486 - in reply to #5673082) Subject: Back to Where you Started
Buxton ND
Alberta Farmer - 12/3/2016 12:11
Sat I know we will never convince you of this but a falling currency is a very short term stimulus to a market. The market participants still have to purchase goods in the real world real world currency. The wages the inputs the rents all adjust To the new reality and you are back to where you started. Feels good for a short while though just like any drug (so I'm told).
Amen Alberta wheat it back to where it started pre-E-Boom, board prices at levels not seen since July of 2006, toss basis in and its worse. DO NOT think anyone wants to know where the corn price was July 2006. A rising US $$$ vs very weak world currencies = the wheat market right now. This can be said of the early 1980 and the early 2000's
Its NOT just our strong $$$ its the relationship to weak other currency's whether now or then.
The average futures price for the first 5 years of the 2000's ending Dec 31st 2004
ZC - 2.29
ZS - 5.69
ZW -3.11
This includes the really nice run-up in 2004 both corn and beans
EDX - 103.75 the US in this same 5 year period 103.75
This SAME 5 year average today is 87.80
US $$$/Ruble and Double 00 Beans
