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The New Paradigm

PORKER

Well-known member
No matter how you look at it, if indeed all the optimism about biofuels and ethanol remains (with public support for biofuels subsidies steady, crude oil at current levels, and current demand unwavering) then it may be likely to lead to an AVERAGE cash price for corn over the next 2-3 years at $4. This creates some interesting situations for all other commodities, as an equivalent price relationship for soybeans might be $9 cash beans, $6 cash wheat, and equivalent price increases of 65-85% in almost all other commodities grown for grain. There is almost no other long term solution given a $4 cash price for corn. So while corn prices seem almost too good to be true now, it might also actually mean that current commodity prices for other grains might very well be well undervalued!

http://www.agriculture.com/ag/story.jhtml;jsessionid=SWWURNX4PLS5ZQFIBQSB5VQ?storyid=/templatedata/ag/story/data/1170349768822.xml
 

ocm

Well-known member
PORKER said:
No matter how you look at it, if indeed all the optimism about biofuels and ethanol remains (with public support for biofuels subsidies steady, crude oil at current levels, and current demand unwavering) then it may be likely to lead to an AVERAGE cash price for corn over the next 2-3 years at $4. This creates some interesting situations for all other commodities, as an equivalent price relationship for soybeans might be $9 cash beans, $6 cash wheat, and equivalent price increases of 65-85% in almost all other commodities grown for grain. There is almost no other long term solution given a $4 cash price for corn. So while corn prices seem almost too good to be true now, it might also actually mean that current commodity prices for other grains might very well be well undervalued!

http://www.agriculture.com/ag/story.jhtml;jsessionid=SWWURNX4PLS5ZQFIBQSB5VQ?storyid=/templatedata/ag/story/data/1170349768822.xml


And the unacceptable "out" is to go after cheaper imports, so we end up (because of ethanol subsidies) importing less oil (debatable) and importing more food.
 

PORKER

Well-known member
OCM ,that Might be TRUE ,but the FDA Bioterrorism and the new container law passed a couple weeks ago is killing off all imports of everything including food.
 

ocm

Well-known member
PORKER said:
OCM ,that Might be TRUE ,but the FDA Bioterrorism and the new container law passed a couple weeks ago is killing off all imports of everything including food.

I must have missed that one. What are your referring to?
 

PORKER

Well-known member
The FDA Bioterrorism law says in its hunderds of pages of rules that any cattle
moving into the US from where ever has to have transport records and a source .I got to remember which section I read that in? I think that law covers all food including beef with its age at slaughter. Got to start reading.
 

PORKER

Well-known member
Found a link on containers; http://www.latimes.com/news/printedition/opinion/la-ed-ports15jan15,1,795957.story?coll=la-news-comment
 
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