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Oklahoma | I am speaking of wheat specifically. Harvest is under way and it is quite a good crop. Test weights are 60+ and yields are 40s to 50s. This begs the question, how low is wheat going to get? They speak of surplus supplies of wheat before the harvest begins so that leads me to think that wheat may become damn near free in the very near future. It is pretty damned depressing hauling a bumper crop to town when the $$ per acre is the same as last years frozen out half crop. Bumper crops only come along so often and that is when we are supposed to make up for all the ****ty years. It seems that they would just as well burn the crop as harvest it. Logic tells me to sell off the truck and just slightly lose my ass rather than hold on to it and get massacred. But logic rarely has any part in these markets.
I really don't buy this strong dollar movement. I mean are we really any better off than Europe? We have been pursuing the same policies and unsustainable spending that has gotten Europe in the mess they are now in. You cannot sustain govt. spending being 40-50% of GDP. If the dollar is king and there are no effects from our current levels of govt. spending, then by all means pass universal healthcare and give cash to everyone because it apparently has no consequences.
I know I am lacking technical fundamentals and such in my post, but this is just the situation as I see it from the ground level. It appears that there will be a hiatus on grain production for a year or two for this farmer. There are other less risky and more rewarding uses for a wheat crop than grain for now. But the question remains, how low is it going to go? It closed at $3.27 today.
Edited by farmerbyron 6/8/2010 00:08
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How low can it go?
