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Midwest | On ag real estate, Stock market, home sales market, lower unemployment rates. will this bleed over in to commodity prices. The answer is no. Commodities always are measuring the burden of production vs the demand for them. Demand will never be too aggressive when the supplies are plentiful. That is why producers need to be constantly proactive in market development. There are outside forces we cannot control like dollar exchange rates and interest rates in levered business's. There may be times spec money moves from equities to commodities but that is short term and very fickle. I may get burned for this but ag real estate ownership is a total disconnect from the production side. The two function on very differently economically . One functions on long term goals and the other short term. It's a strange and some times strained relationship. | |
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The of price of Grain and Inflation? Ray Jenkins
