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Buxton ND | The bulls love to point out usage and demand.
Look at how usage sky rocket in the 1970's as to Southern chart. PRICE DID NOT.
High priced wheat may have had something to do with this ? ? ?
Does this ring a bell from 2008 ?
Then from 1979 to 1985 look how it dropped ? I'm gonna gonna take a wild guess here and say wheat was going in the feed bunks.
Alittle story from my pig days, winter of 1985/86 I bought a bunch of corn from a local Co-op @ 1.43 Dad asked why on earth are you buying all this corn, simply answer was IT WAS DIRT DIRT CHEAP. The next corn i bought was June of 1988 OVER $3 that hurt ! ! !
NOW the producers that raised that corn,,, selling it for probably 1.33,,, USAGE AND DEMAND MEANT NOTHING*****
INCREASES IN WORLD WIDE PRODUCTION MEANT EVERYTHING.
Then toss in the UN-Godly strong US Dollar***** Trading over $160 (it was a different index back then)
Look at whatever grain price you wanna look at in the 1983-86 time frame*****
THAT WAS REALITY OF BEING IN A WORLD MARKET**********************************************************
Another story to top this off from a neighbor in the mid 80's that sold wheat for $2.13 he said "I had NO choice, I had to make a house payment" Fast to today how many are selling grains because then need to make "Payments" SAME PAYMENTS need MORE BUSHELS. IMSVO this equals HEDGE PRESSURE, it very clear in beanies by the numbers. EVEN WITH CHINA BUYING. | |
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Where are all the corn piles?
