Crop Production Week

[farmaholic]

Maybe some guys are make money at 6 dollar peas and are preselling. ...

I suppose everyone's profitable pricing point is different! You may be able to roughly calculate your input costs today but cut the expected yield by 25-50% and see what that does to the break even per bushel!

[bucket]

Farmaholic

There isn't a crop that makes money right now....

Sure if you can grow 60 bpa of every crop your inputs are lower since you don't need crop insurance...

My issue with all of this is simple ...why isn't the bushel price of grain keeping up with everything else?....

Oil is in oversupply but gas keeps going up..

Machinery costs outpace inflation...

[farming101]

From another thread farming101 made the comment.....

"""""|It occurred to me that oil producers, miners, big forestry companies, even most of the downstream livestock industry, have the following in common:

They cannot logistically, and do not, store a year or more of production.
They rarely if ever produce a product that isn't already pre-sold.*

Therefore, if they don't have the ability to pre sell it for a profit, or pre sell it at all, and no ability to store it, they won't produce it...."""""


Maybe some guys are make money at 6 dollar peas and are preselling. ...

Can't take credit for that statement.....AF5 I think

[bucket]

Farming101


Oh shit....yes you are right ....I corrected that....

In a hurry....


but some of the logic remains ....there may be guys making money with 6 buck peas....they might live in Russia though. ..

[ajl]

Most oil producers are price takers as well as farmers. AB sludge was selling for $30 Us a couple of weeks ago because it was hard to get rid off due to Keystone pipeline outage. Most do hedge on futures markets a fair bit which is easier to do when weather is not a total wildcard. They can be affected by weather too.

[farming101]

but some of the logic remains ....there may be guys making money with 6 buck peas....they might live in Russia though. ..

Correct...But precious little can be done about the price of peas in Russia.

[Klause]

Correct...But precious little can be done about the price of peas in Russia.

Well we could have not sold them the seed...


Buy otherwise... Yeah.


Once the silk road is complete we are done. Russia to China for $11 in freight.

They get $8 we get $5 because of freight differences.

Not to mention a higher yielding higher producing climate and geography.

[bucket]

Klause


Yuuup!!!!!! You hit the nail right on the head.....


Russia has the crow rate to create wealth while Canada redistributes it....thru graincos and railways....

Tearing up infrastructure that those countries would love to have and they will while we have leaders with their head up their ass. ...

[farmaholic]

Ultimately Canada has lost sight of what matters.

[Kinger]

We will likely see more trade protectionism in the near future. Hopefully after the next election in Canada.

Maybe even more reverse vertical integration with end users which would be nice to see.

Just the landscape we have now.

Back to the main topic, not at the show but heard from a few buddies it's pretty good this year. Even with the negativity. Not much for prices though.