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Pilot Grove, Missouri | You are partially correct. Supply and demand do set grain prices. Farmers have no say in actual grain prices, reguardless of what production costs are, the only thing a farmer can do is decide when he sells. Fertilizer producers set their prices and use supply and demand as a reason (excuse) to raise prices. They also raise prices anytime grain prices go up. Supply and demand has very little to do with actual fertilizer prices. There is bascially no relationship in the way grain and fertilizer are priced, except for the part about manufacturers raising prices when grain prices are high. Patrick | |
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