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| Over the last few years in North America? It's happened many times at the producer level but you can't keep selling if you're losing money so it stops fairly quickly. Then again, it's happening every single day internationally. That's what commodities are all about. The prices rise and fall to the marginal producers cost but no one knows exactly where that line is at any time. Those producers on the edge keep producing/selling hoping that tomorrow is better, until it isn't. When buyers refuse to buy and push the price too low too many producers shut down. Then when demand materializes and prices rise to encourage enough production to meet demand but no one is clear how much demand there is and how long it will last. Is there too much supply, just enough or too little? That is happening, to some degree, every single day somewhere in the world but when it happens closer to the time consumption occurs the price swings can be dramatic. That's true for both higher and lower prices.
On pricing, you can use all the semantics you want. As a farmer you set your price for grain and wait for the market to get there. Sometimes you get it and sometimes you have to change your price and sell at what the market is telling you is a fair price. That is exactly what fertilizer sellers do except there isn't a daily scoreboard for pricing like the CME. | |
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Anhydrous verses UAN and Urea
