Is this the start of a deflationary wave?

[Burbert]

Oh no, wes need/want prices climbing,
climbing all the time, our economy depends
of it. Ripping off customers is the only
way that the thing will work, otherwise we
need schemes, scams, and theft ta maker
work. Oh and pipelines, lottsa pipelines
to pump er dump oil whereever, whenever
theres a bitchbubble forming. Go Comedia,
go. Heil Harper

[crusher]

I was starting to get a little concerned
about grain prices, now that there is
talk of deflation we should be all right
for a while.

[ALLFARMER]

Ya the cattle futures chart took a dive when they
closed that plant in Texas. Prices started to come
back then hard down again. Bred cow prices in
AB have come up though. Maybe people are
switching over to horse?

[ColevilleH2S]

FYI on page 31 of the Feb 15th Country
guide Errol explains the issue a bit
more thoroughly.

[cottonpicken]

Forgot to note a major downturn in the short to
medium term is not out of the question.

[hobbyfrmr]

"Commodities can't decline in price and have inputs at all time highs. That might decrease the burdensome stocks but for only so long."

Yes, this can happen. What about all the prepaid fertilizer? Many farmers pre bought and did not offset that cost with a new crop canola/wheat/oats/barley hedge.
If commodities drop, thats just the way it goes. These things are extremely frustrating, but, the market is always right.
I hope prices stay in decent profit territory, but man, there is a saying that I hate, but learned to understand. The market is always right.

[hobbyfrmr]

I really dont understand the market, only the saying.

[cottonpicken]

using 1 set of technical perameters that within 3
years the price of beans would be to obscene for even
ME to post.

[TOM4CWB]

Errol,

If black oil holds up... so will grains.

It looks to me like the Ruskies will back Iran...
so the middle east can squeeze the US for every cent
they can...

By keeping black oil around $100/barrel. Obama is not
in a big hurry to change the dynamics of the oil
market... by his state of the Union.

In fact I believe the administration wants to keep oil
prices high... so solar and wind have a chance of
becoming competitive. This all keeps grain prices high
relative to the past.

I do not get the 'deflationary wave' thing... why would
the US dollar get set to go higher in value... over the
long term? Just the opposite would be my forecast.

Cheers!

[Burbert]

As long as we have a Comedian Senate,
screwing Comedian taxpayer ta the wall,
all will be well/OK in Comedia.
Heil Harper