Cheap oil

[agstar77]

With adjustments for inflation oil at 55 is equivalent to 11 in 1974.

[bucket]

Agstar

Dumb question.

What would be the inflation adjusted wheat price today considering what wheat was worth in 1974?

That's the real downer considering that the average price was 4 bucks and you actually buy something.

[AllisWD45]

Using price in 1974 wheat at $4 it would be $18.58 today. CPI in 1974 was 27.1 and in 2014 is 125.9
Got this from Bank of Canada website there is an inflation calculator that can go back 100 years.

[furrowtickler]

Ya but we are greedy if we try to hold out for higher prices

[bucket]

Furrow

We are greedy if we want more than 6.25 a bushel.

[foragefarmer]

I find it funny oil prices fall and the media can't stop talking about it. Grain prices go down and there's barely a whisper. The agriculture cycles are much shorter then oil as well. Oil had a great run from 2009 to July 2014. Prices steady increased and stayed in very profitable range throughout that period. I'm sure the oil companies have plenty of resources in the bank.

Looking at what agriculture does for the economy compared to oil, I'm wondering which puts the most dollars into it!! I guess with a little effort those numbers are out there to compare.

[farmaholic]

Economies of scale, Economies of scale, Economies of scale!!!!!!!!!!!!

Too bad we have to farm way more acres to KEEP UP with everything else. We need more of what we produce to buy what we need to farm. The ****ing system is broken. Or did we just get that efficient and everyone else gets to plod along at their 1974 pace and enjoy the fruits of inflation.

[cottonpicken]

Latest out of opec today was no plans for a meeting for three months,no emergency meeting even if it falls to 40.Tonight should be fun.

[Rareearth]

Just to stir the pot.
Maybe more Russian investment in Western Canada would be beneficial? First buy 51% of CP. second a grain terminal. Third a grain trading company Not necessarily in that order.

If Russia can't do it alone then Chinese or India government partner. We could provide safe - food security to those countries. They would or could pay us in Canadian domestic dollars or gold

No more USA petro dollar risk. We have Canadian trade agreements with China in place now.

[Hopperbin]

The chinese would sure love our land. Dont understand giving half a railroad away will be beneficial To add More capacity and competitiveness or benefit to farmers. since china purchases such a large amount of beans canola meal and oil. why dont they have a presense here with a few terminals?

[tstep]

OPEC don't give a shit if it falls to 40. They would love that. They are doing it to see if the U.S. can survive.

[cottonpicken]

There could also be something happening behind the scenes we dont know about,a lehman type event.

[foragefarmer]

tstep

Opec is doing to see if Russia can survive, not he USA. Putin thinks he's unstoppable. The Russian economy and ruble are crashing, sanctions will work.

[Rareearth]

Saudi and USA have a deal. The Usa protects the Saudi family and from being run over by Iran, Iraq types. The USA will buy oil from Saudi and pay them in usa dollars, this is what all opec countries do (Saudi led this move). This is how the usa petro dollar started in the 70's

Today Russia wants to get rid of the Usa dollar standard, they are the worlds power house in oil, control and influence.

Today every one is moving to natural gas, pipelines and liquified. As well the USA doesn't need as much oil it's developing more of its own with technology, as other countries are. All this means lower oil demand.

I think the USA is guiding Saudi ( opec) to maintain production, protecting their market share, and to hurt Russia financially, ( they like high priced oil as they are exporte This also boosts USA domestic economy, keeps money at home, and delays in the near term pressure on the USA buck

[mcdon]

Today Denmark makes claim on North Pole...a little late given $56 oil...Now that is funny.