Biggest Threat to High Prices!

[SASKFARMER3]

What is the biggest threat to high food prices. Hm good question. From where I sit it seems to me that when the population gets to short supply of food we farmers are suppose to bow down to the people and give them what they want.
These same parisites then have the gaul to complain when we farmers recieve subsidies.
Boys its simple CHEAP FOOD POLICY!
Those that dont believe it are so full of ship that its not even funny.
We have political unreast in areas of the world where food is starting to run short. Hm hungry bellies equal unreast. Yes thats for sure look at average american their over weight just imagine if they were all skinny and the current down turn happened. WW3.
But yes we provide cheap poduct over and over and are given the scraps. Hm CWB debate on larger scale. Oh well at 14 for Canola is still better than 3.99 for HRS.

[cottonpicken]

Higher interest rates

[Fransisco]

The specs getting out of the market.

[parsley]

<p></p>
<p><strong>[URL="http://blogs.forbes.com/charleskadlec/2011/01/25/president-obamas-strategic-blunder-with-china/"](What kind of money should Mamma keep in her purse?)[/URL]</strong></p>

[brian99]

I agree with SF3 (except for the spelling mistakes ), governments will screw this thing up quicker than anything else. Look at the July Minn wheat chart, this thing looks like it's just getting started. IMHO. I've been wrong lots before.

[SASKFARMER3]

Ipad and spell check don't work. Plus typing and driving is a no no.
I think govt will try to keep prices down and blame the increases on anything.

[rockpile]

There a saying among commodity traders - "the cure
for high prices is high prices". Simple supply and
demand. With good optimistic prices forecast, wall to
wall production will increase, input use rise and
eventually - voila - oversupply and lower prices. Same
old, same old. If you need a graphic teaching tool, buy
a gerbil and a squirrel cage. Study the outcome. P.S. -
agree, interest rates will be a game changer.

[brian99]

I'm sticking to my opinion that interest rates won't go up much, not with the states buried under a mountain of new debt, and maybe not done, QE3?, 4? Canada can't afford to get too far out of line, either.

I don't know if high prices are the answer to high prices, this time. We are pumping out billions of bushels and barely keeping the pipeline full. Now drought in China, U.S. high plains dry and a strong La Nina probably going to keep it that way. It's just plain fun watching wheat chase ten bucks.
What could screw this up is a collapse of the ethanol sector, but one report I read said ethanol is profitable even without the subsidy. Well maybe not with corn at $6.50. LOL

[cottonpicken]

QE will be going on a long long time,not sure
what number it will hit. The governments balance
sheet is broken the unfunded liabilities are off the
map,there is no solution to the problem,what we
are witnessing is a currency event that we have
never seen.

Can't wait to see the us budget. It could make
quite a difference to us farmers in the short term.
Bad or good I can't tell yet but I think the trade
volumes that we have been seeing are setting us
up for something big and that china trip was very
interesting in it's timing.

[cottonpicken]

Numbers also give perspective.

150 billion buys all the wheat,corn,soy produced
in a year in the us?ballpark


1.5 trillion deficit?every year?

10 years production being turned into debt?

[checking]

"China trip was very interesting in its timing"

Really.

Headline for November 18, 2009 - Obama invites Hu to Washington in 2010.

Sure, Hu arrived a little late (Jan.18, 2011)

[brian99]

We are already seeing the result of this debt. China is making commodity deals in anything but american bucks. I think this is going to continue until something big happens and people don't run to the US dollar, that will be the end. And they won't see it comin.

[Hopperbin]

So what do they buy commodities in what currency???? I don't get it.

[Hopperbin]

Hmmm, do we live on the wrong side of town

[Hopperbin]

Its interesting, the chinese are not much on keeping things clean if you go out the tourist zone. Why?
Basically there is no profit in cleaning things.