LOL. I'm comfortable being short your longs.redrobin said:I said yes but since you say no, that is conclusive evidence that it's going higher and I'm more comfortable as a market antagonist. :lol:
Global food prices have reached a nominal all-time high, surpassing the previous peak seen in 2007-08, when food riots rocked the poorer countries of the world. The consensus is that due to weather, demand and smaller inventories, the prices of the basic food commodities will surge even further. The cost of a barrel of Brent crude oil is approaching $100.00 and some estimates indicate it may hit as much as $120.00. All the futures prices of metals and other commodities vital to manufacturing are also nearing or exceeding all time highs.
The inflation rate in China is approaching double digit levels (annualized basis). In Europe the rate is rapidly exceeding the targets set by the central banks, and in the United States, the Federal Reserve continues to effectively print money while the government goes about its trillion dollar annual deficit spending spree. Since 2008 the U.S. monetary base (basic measure of money circulating in the economy) has increased over 200% from $800 Billion to $2.1 Trillion. This is unprecedented and is one of the underlying causes of inflation but more importantly as the unavoidable inflation picks up in the United States it could well be a catalyst for potential hyper-inflation reminiscent of the 1970's.
3words said:Prices are still to low,if you compare to how everything else has gone up.I remember selling calves off the cow in the ninty's and getting over $900 for some of the calves,and i know in the nintys things were a LOT cheaper to buy.In 1998 new haybine was $18,000,this year they are $53000.New round baler in 2003 $31000,last year a new baler was $60000.Was gas $5 a gallon,and diesel $3.70 in the ninetys?Not even close.So this year my steers off of the cows averaged me $894 and the heifers averaged $832,did i make anymore money then i did in the ninetys off of my cows?No i lost money,so no calf prices are NOT where they belong,and i'm getting tired of them feeding us all the crumb's!
Denny said:As long as exports keep up I believe so our weak dollar and other countries taste for something more than rice and beans will drive all sectors of the meat industry.I read where the value of an exported fat is valued at $2.50 a lb live weight. If your a packer and can buy our steers for $1.10 live and sell for $2.50 thats a pretty good ticket.This figure was useing all the values of the animal from meat to offul value. Same article stated that fats will hit $1.25 by June 2011. $3.50 diesel and $6 corn we need these prices just to stay afloat.
Another note as our economy has been in the tank alot of other countries have been doing quite well and have the money to spend. Also we are one of the few countries with Grain Finished beef and others in the world are craveing it. Like it or not a Brazilian company JBS has seen the writeing on the wall they already suppley the grass finished from brazil now they will suppley and market the Grain Finished from North America. The Tide is changeing I think were in for a wild ride.Were poised to be Price makers not Price Takers.Better pull your hat down tight.
The hair in the soup is the very thing you're so fond of. If we happen to have a case of BSE or FMD and our market is based on exports and given the situation where our own population , because of inflation, can't afford any more expense to their grocery budget, prices would plummet.Oldtimer said:Denny said:As long as exports keep up I believe so our weak dollar and other countries taste for something more than rice and beans will drive all sectors of the meat industry.I read where the value of an exported fat is valued at $2.50 a lb live weight. If your a packer and can buy our steers for $1.10 live and sell for $2.50 thats a pretty good ticket.This figure was useing all the values of the animal from meat to offul value. Same article stated that fats will hit $1.25 by June 2011. $3.50 diesel and $6 corn we need these prices just to stay afloat.
Another note as our economy has been in the tank alot of other countries have been doing quite well and have the money to spend. Also we are one of the few countries with Grain Finished beef and others in the world are craveing it. Like it or not a Brazilian company JBS has seen the writeing on the wall they already suppley the grass finished from brazil now they will suppley and market the Grain Finished from North America. The Tide is changeing I think were in for a wild ride.Were poised to be Price makers not Price Takers.Better pull your hat down tight.
I agree- thats what I've been hearing too...
Korea is now in a pickle with FMD- and several other countries are having enviroment problems.... I think the next year will be strong--and I also think that just like the record prices set during the border closure created a new guideline price for cattle/beef-- this will create a new guideline also...
redrobin said:The hair in the soup is the very thing you're so fond of. If we happen to have a case of BSE or FMD and our market is based on exports and given the situation where our own population , because of inflation, can't afford any more expense to their grocery budget, prices would plummet.Oldtimer said:Denny said:As long as exports keep up I believe so our weak dollar and other countries taste for something more than rice and beans will drive all sectors of the meat industry.I read where the value of an exported fat is valued at $2.50 a lb live weight. If your a packer and can buy our steers for $1.10 live and sell for $2.50 thats a pretty good ticket.This figure was useing all the values of the animal from meat to offul value. Same article stated that fats will hit $1.25 by June 2011. $3.50 diesel and $6 corn we need these prices just to stay afloat.
Another note as our economy has been in the tank alot of other countries have been doing quite well and have the money to spend. Also we are one of the few countries with Grain Finished beef and others in the world are craveing it. Like it or not a Brazilian company JBS has seen the writeing on the wall they already suppley the grass finished from brazil now they will suppley and market the Grain Finished from North America. The Tide is changeing I think were in for a wild ride.Were poised to be Price makers not Price Takers.Better pull your hat down tight.
I agree- thats what I've been hearing too...
Korea is now in a pickle with FMD- and several other countries are having enviroment problems.... I think the next year will be strong--and I also think that just like the record prices set during the border closure created a new guideline price for cattle/beef-- this will create a new guideline also...
redrobin said:If we happen to have a case of BSE . . .
You need some son-shine and warm weather Burnt.burnt said:redrobin said:If we happen to have a case of BSE . . .
Haha, I really like your chances of never finding another home-grown case. Heh, heh.
redrobin said:You need some son-shine and warm weather Burnt.burnt said:redrobin said:If we happen to have a case of BSE . . .
Haha, I really like your chances of never finding another home-grown case. Heh, heh.
burnt said:redrobin said:You need some son-shine and warm weather Burnt.burnt said:Haha, I really like your chances of never finding another home-grown case. Heh, heh.
:lol2: :lol2: :lol2:
Canada has areas of permafrost! :wink: