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Northern Illinois | I am a long term bull. Always have been. I can trade both sides but more often then not am looking for a reason for a market to rise. Why??? Because that is what history says markets do. Over time grain futures rise.
You ask what I gleaned. I see a confirmation that prices rise. Using round numbers it took 30 years for the "Value of Production" in the far right column to double from $10,xxx,xxx to $20,xxx,xxx. 1977 to 2007. The next doubling of the "Value of Production" only took 5 years to go from $20,xxx,xxx to $40,xxx,xxx. 2007 to 2012.
How long will it take for the "Value of Production" to double from $40,xxx,xxx to $80,xxx,xxx???? I do not know but I suspect that it will not take 30 years. It has already taken longer then 5 years but as a person who is bullish long term agricultural prices I am in the under 30 years camp. | |
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