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| Warning - Content below opinion only. Enter at own Risk!
The real issue here is not the supply and demand issues. What is happening is a lot of people are recognizing that the economies of the world are all teetering on collapse. You can only live on credit for so long before you run out of money. Almost all nations are in the same shape as the big banks that were in the sub prime mess. The U.S. lends to everybody else and everybody else lends to each other and the U.S. If you keep loaning the same money back and fourth enough times something's got to give. We are in a state of controlled panic, everybody has a breaking point and when that is reached they look for something they can get their mind wrapped around that has value. Everybody needs something to buy but where park your money. Why not something that everybody needs to survive? Food, the grain market is the best place to put your money if you have the least confidence in the Economy. What good is gold if there is no commerce, you can't eat it. If the economy continues to slow oil will be abundant. One thing that so far keeps growing exponentially is population and you have to feed the growing population. Arable land is decreasing at an alarming rate. I believe the previous is the reason for commodities to be strong. However, just as soon as the economies turn the corner and we start improving on the economic ladder (globally) you will witness one of the biggest drops in grain prices you have ever seen. IMHO, I think we have abundant supplies of grain, probably so much we are choking on it as we speak, but in the mean time enjoy the ride. We may have a great time farming for the next few years before the other shoe drops, I just have to time a farm sale at the right time - but that won't happen either. Ride the bull and hold on tight!
P.S.
All these reports that supposedly are causing the market to move is another example of the human race's attempt to find an explanation to something you don't want to know the truth to. We just happen to be the beneficiaries to the madness. | |
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Heard commentary today that said we are going from a supply market to a demand market
