West Central Alberta Coldest, wettest edge | Gottlieb, fundamentally what you are saying makes perfect sense. But economically, if the world is content with 62 days of reserves, then those last 4 that were just added are the marginal supply which will set the price, money flow just being the short term noise trying to get a piece of the profit while supply and demand battle it out to find equilibrium.
On the other hand, 66 days of reserves is complete lunacy when you consider it. I know farmers would prefer to have nearly zero reserves in the world so that they don't weigh on the price, but it is food after all, I'd kind of like to live for more than 66 days if a large scale climate catastrophe should occur. In some products just in time delivery just doesn't seem rational. |
2013 YEAR OF SUPPLY / 2014 YEAR OF DEMAND
