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Ontario's middle east | I mentioned in Sats post below this morn that there are also direct ramifications for inputs this fall that are US dollar priced such as fuel, fert, chem, seed(unless they bin run) That stuff just got dearer.
Tara, as far equipment makers forecasts go, there was a number of assumptions made to generate them. Without knowing them its hard to comment, but I will say they generally make forecasts based on the recent past. Does that include a weak Real that will deter foreign equipment? Does it require beans in the teens? IDK The thought that came to mind reading the article was a JD guy that commented to me, I think it was late '07, when I was whining about a price increase, that JD didnt really need the NA market, they could sell everything they could build to Russia/EEur. Then they got stung and had lots of cancelations and we mattered again.
The main point I should make on currency is that timing is everything, what if the weak Real drives up input costs then gives way to a stronger Real in the new year and smokes the price of there beans? Not saying that will happen, but I have enough currency related scars to make me leery of there benefits. | |
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I know the popular thought is that Brazil will wither under the lower prices
