|
| Demand is pretty much constant or increasing each year as population and wealth increases or not. It is not up to us to supply below COP, demand for our product is dependent upon world supply. Obviously, poor crops elsewhere can increase demand and price. The market is the instrument to stimulate or deter production. In a world of monopolies and collusion, there are few products working in pure competition. Food supply in North America is one such product, although mostly only in crop production.
We as crop producers make decisions based on what we perceive will be market demand, and most of us desire profit. Market manipulation is especially troublesome, and particularly annoying when done by those with no skin in the game. Exports of .715 bb were the result of drought causing a large drop in our production. Exports may have been much larger even at the higher prices, but those endusers in our homeland also control the export trade, and had no desire to short themselves of badly needed supplies. We don't "buy" our demand. We do our absolute best to supply it, while trying to survive. | |
|
A thought about demand......
