Is the worst over?

[TOM4CWB]

Cottonpicken,

The summer of 2008 has produced over 70mmt of wheat MORE than 2007.

Plus the world economy is in a tailspin... on top.

That makes a massive difference...

[Kodiak]

There is one other difference that I don't think has fully played out yet. I think world currency relationships are still going to realign. The question is when - and at what ratios. My belief is the US dollar is going to have to drop at some point, perhaps very quickly and very far. That will change all commodity pricing.

I cannot see any other way out for them. They have huge debts to repay, and are becoming less and less competitive with the rest of the world. A lower $US will eventually happen and bring them some relief from both of these problems.

But then - I'm no expert. Just dirt farmer logic.........

[charliep]

Kodiak

Based on your thoughts, should a farmer be hedging the loonie? This is based on the thought a weaker USD dollar will eventually work back to higher US futures. The higher US prices will be offset by a stronger loonie under your philosophy. Input prices/equipment prices should come down with a stronger loonie but this doesn't seem to have occurred very quickly in the past.

[cottonpicken]

The ENTIRE world is inflating.

The greatest head fake ever has just happened.

The us alone pumped 2.7 trillion this year.