Feed grain price prospects

[samhill]

And big crops have longer tails.

[errolanderson]

The North American feed market was destined to head lower this year regardless of the size of the U.S. corn crop. But the massive size of this crop is now just adding-insult-injury.

Crude oil is the grand-daddy of commodity markets. And global crude values remain in steady decline of which is pressuring the grain-fed ethanol market.

In fact (IMO), the deflationary pressures on our markets are possibly great enough for the Bank of Canada to cut rates in 2015. Gold appears appears ripe to test $1,200 soon. Silver has been in-collapse.

This is a global problem; not just a farm production problem. All sectors, all industries will be impacted in my opinion. It may be a housecleaning, but maybe a badly needed housecleaning to refresh global economies.

[bucket]

So other industries are going to take a haircut like 8 dollar wheat to 4.5 wheat.

Charliep and errol are prepared to have their wage cut in half because the market is right.

Maybe the government and others could hire experts from other countries that would work for less. The market is always right - labour or commodities.

[blackpowder]

At least I never heard any older farmers believe the new world order shit about commodity prices. Only talking heads and landlords.

[cottonpicken]

The debt bomb can not be dealt with if we get deflation.

The entire western worlds markets are being managed because they have to be other wise the implosion would be castrophic.

Central banks are monetizing the debt and even buying equities.

Re read that and understand it.

The situation is beyond ****ed.

If you think thats all hog wash,seriously go buy some yen,because if your thesis is correct the yen will buy more in the future because they are much further down the path that we are all on.

And then there are the banks.

If there assets deflate in any meaning full way,they are done,look at their leverage ratios,its a very simple to find FACT,its what the stress tests where all apart.And excatly what a bank run is all about which increases the magnitude of the problem,the tier 1 reserves are drained and the leverage ratio goes through the roof and BOOM its done.

Think cdic has enough capital to cover all deposits,its a frickin fraction.

[ColevilleH2S]

I don't know cotton, there's a guy over on Agtalk talkin' 9% interest rates in 2016. He's upset that people have called him on it. LOL

[errolanderson]

Cotton . . . you are right, it's a debt bomb. No way of defusing it though

Talk of U.S. hiking interest rates makes me laugh. If you want to trigger the debt bomb, just hike interest rates.

[blackpowder]

Cleaned out some trucks and spills. Took to town rather than tie up a bin.
14.6 protein feed wheat! 2005 all over again.
Good friggin luck!

[sumdumguy]

It looks like the unions are going to fuel the interest rate hike. They are starting to strike for a lot more than 2.5-3%. That'll put the boots to the borrowers.

[cottonpicken]

Lets see total global credit market debt 250 trillion ish?

Total global gdp 70 trillion?

10%interest rates?

25 trillion debt service cost,1/3rd global gdp