Commodity Deflation

[errolanderson]

Global commodity markets remain entrenched in a deflationary spiral.

With global economies continuing to slow, overall commodity prices remain in-a-slump.

Losses in the grain and livestock sectors are only part of a much larger global decline. All of us have never witnessed deflation in our lifetime. And the deflation is a central bankers worst fear as money printing now fails to stimulate, but rather drags out a much bigger challenge for any recovery.

This process will be painful heading into 2017/18. Inefficient old money will have to be flushed out of markets being replaced by more efficient new money.

Translation: Keep your marketing guard up this fall and winter. Rallies will occur, but they will not hold. Profits will continue to come and then go.

All the best with your marketing . . . .

[bucket]

Thanks errol

But when the price of a 8 oz steak starts to decline it might start to make sense.

****ing no one else wants the same haircut that primary producer's take...and then wonder why there is no demand change.


Beef prices to the cow calf guy have dropped in half but the end user has the same price if not more.

[fjlip]

My retirement plans will be taking a hit...and thousands of others, just great, timing is all about LUCK! Any decision can turn out wrong!

[cottonpicken]

Check out the press conference with imf director lagarde and treadummy.

Gender equality,fags,equality,donations,wealthy people,equality,candians values,**** the pipelines,indians,indians,growth,growth,growth,job s,environment,safe reliable ways to move shit,solutions and the right discission because thats what canadians want.

You can't make this shit up,god in my next life make me a press reporter for 1 day,here lagarde,tredux here are some numbers,please,please take your time dummies and please tell me at what time in history a country benefits from running triple deficits,current account,government and balance of trad.think a quarter quadrillion debt bubble and negative rates are actually going to "get some growth"-want to talk about the quadrillion dollar cds market insuring that crap and global capital base is what 70t?

Go and do a press conference like that in greece and see what happens,lol.

LOL-does anyone even know what the ****in imf was designed for anymore.

wtf is going on

[cottonpicken]

25 trillion in global sovereigns bonds at a negative yield.

So thats right a capital manager gets less then what is invested and a borrower owes less.

And.....we are suppose to believe this

And the manager buys a swap to insure himself in a bank who's tier 1 reserve is peanuts and incapable of ever paying anything out on a default,and the borrower does the same on the interest side swap.

[BFW]

Sucks for sure, but retirement is over rated anyway. Good luck everyone

[ajl]

The great depression has begun. Party like its 1930. The effect of financial engineering is transfer wealth from the poor to the rich and then central bankers wonder where demand went.

[jake550]

High prices cure high prices and same thing for low prices.
Blah blah blah and they can fly a kite till the prices improve (on wheat).

[farmaholic]

This thread is way too funny.....grain commodity deflation? That would be assuming grain prices appreciated lockstep with inflation.

101...the chart-guy. If you have time, chart grain prices against inflation or some other common consumer goods.

Maybe machinery needs a reset! Maybe canola seed needs a reset? Maybe new vehicles need a reset? Maybe housing needs a reset? Maybe pesticides need a reset. Fuel had a reset. Fert had a bit of a reset. Shop labour NEEDS a reset. Machinery parts NEEDS a reset. There are a lot of things that could stand a reset but to think commodity grain prices might "deflate" is..... is...... is..... disturbing!!

[jake550]

This thread is way too funny.....grain commodity deflation? That would be assuming grain prices appreciated lockstep with inflation.

101...the chart-guy. If you have time, chart grain prices against inflation or some other common consumer goods.

Maybe machinery needs a reset! Maybe canola seed needs a reset? Maybe new vehicles need a reset? Maybe housing needs a reset? Maybe pesticides need a reset. Fuel had a reset. Fert had a bit of a reset. Shop labour NEEDS a reset. Machinery parts NEEDS a reset. There are a lot of things that could stand a reset but to think commodity grain prices might "deflate" is..... is...... is..... disturbing!!

Ya no kidding. I'd have to agree 100%
Commodity prices deflating from what exactly???

[farming101]

Canola holding its own, Wheat losing ground.
What the chart doesn't show is the producer's profit margin. As you say costs are out of control.

[farmaholic]

Thanks 101. Canola surprised me and I thought wheat would be even worse than it is. The linear lines sure smooth things out and there are some drastic extremes otherwise.

[farming101]

Yesterday my nephew was told wheat sold for $6 in 1980. Right away he got on the inflation calculator app and says, "that would equal $17.50 today."
We're already deflated quite enough thank you.

[farmaholic]

My thoughts exactly, but grain commodity prices will probably have to follow the rest of the commodity complex "in sympathy". Even if there is no real need for the deflation! Pawns... man I hate when technical signals move markets when fundamentals would dictate otherwise(not saying that is the case here because I don't do in depth market analysis)

[tweety]

People will always need food. There is at least some comfort in that, at least for the ones who own land.