End of commodity boom real reason for national anger

[errolanderson]

Jazz quote

"And why would unrelated commodities boom and bust at the same time. You mean lentils and soft wood lumber are related? Natural gas and chick peas? Hmmm well how?"

Maybe ask Errol to explain why many commodities took off and then started to decline in price.

Do you think it had anything to do with exceptional economic growth in China and other parts of the world and then a decline in that growth and demand for all types of commodities?

Do you make business plans on your farm based on the highest income years? And then blame politicians when commodity prices and incomes fall?

chuckChuck . . . China's commodity boom lasted between 2008 to 2012 . . . it's been all downhill since then.

China's growth was skyrocketing around 14% annually in their heyday. Now China's growth is likely around 5%. China basically consumes 50% or more of global commodities. China's 2008 Olympics were their 'coming out party'. Inflation in commodities was brisk, times were good. That has now all changed . . . .

[bucket]

Has this reporter heard of hedging and risk management of our farm products we grow!?

What a cop out... blame every one else. Grow crops people want. WHAT?

MARKETING. SELL WHEN PRICES ARE PROFITABLE, GROW PRODUCE THAT IS NEEDED!

There is no way to hedge on a subsidized market that doesn't take into account regional issues like the drought in Australia and the horrible Western canadian harvest....couple that with the FSU investing in their infrastructure to basically absorb our markets by the fact our incompetent governments refuse to recognize agriculture in this country needs help...


You can hedge your loss using your farm's equity TOM or keep asking for the seed tax to make up for it...

[TOM4CWB]

chuckChuck . . . China's commodity boom lasted between 2008 to 2012 . . . it's been all downhill since then.

China's growth was skyrocketing around 14% annually in their heyday. Now China's growth is likely around 5%. China basically consumes 50% or more of global commodities. China's 2008 Olympics were their 'coming out party'. Inflation in commodities was brisk, times were good. That has now all changed . . . .

Drove 6 hours yesterday! huge piles of wet wheat on ground everywhere!!! No wonder prices have dropped!!! Twice as much wheat yield [[in many areas] as last year!!! Should no surprise!!! Blame elevator companies??? You guys... WAKE UP!!!

[GDR]

Has this reporter heard of hedging and risk management of our farm products we grow!?

What a cop out... blame every one else. Grow crops people want. WHAT?

MARKETING. SELL WHEN PRICES ARE PROFITABLE, GROW PRODUCE THAT IS NEEDED!

Change crops? To what? Last time I checked Oranges and Pineapples dont grow to well here. And hedging isnt gonna work for profitability if futures are already at or below production costs.

[bucket]

Drove 6 hours yesterday! huge piles of wet wheat on ground everywhere!!! No wonder prices have dropped!!! Twice as much wheat yield [[in many areas] as last year!!! Should no surprise!!! Blame elevator companies??? You guys... WAKE UP!!!

Must be those new varieties you want the seed tax on.....grow more make less ...
starting to sink in anyone...anyone?

[WiltonRanch]

Years ago dad seeded a lot of the poorer ground down to grass. Got more cows. He seen the decline of profitability in growing crops. That was mid to late 90’s. Then everything changed and we started shifting back to more grain less cows. Now I sit here thinking we might do the same again. It’s all a cycle. Cut out all the static of shitty leaders, competitors, declining purchasing power of foreign economies etc; it’s just a big merry go round. I did what I could at election time, and all else I can do is get my ship in order for the coming storm or maybe lack of wind that strands it in the dead horse latitude.
This article has got it right. Look around the world not only our situation here and see how divided and entrenched everyone has become in their camps. There is no middle ground, and that is alarming. Rash decisions are made by extremist leaders and extreme consequences result. Eventually it will change but what needs to result to cause the tipping point is for other discussion.

[errolanderson]

China has purchased just 6.32 million MT of U.S. soybeans year to date. This compared to 16 million MT purchased last year at this time . . . a 60% decline.

[GDR]

China has purchased just 6.32 million MT of U.S. soybeans year to date. This compared to 16 million MT purchased last year at this time . . . a 60% decline.

So is there any markets picking up the slack? What is happening on a farm level, my impression is that most US farmers dont have much storage capacity?

[bucket]

China has purchased just 6.32 million MT of U.S. soybeans year to date. This compared to 16 million MT purchased last year at this time . . . a 60% decline.

That's not a cycle...its a man made trade war....not started by weather....or things out of our control....

It was something that was planned ....and the US has addressed the consequences by throwing over 30 billionUSD ( 40billion canadian) at the farm community ...meanwhile our governments both provincial and federal choose to ignore farmers in Western Canada by blaming the weather.....

[sumdumguy]

Trump is out beating the bushes for any way he can to make America great, which by the way makes Americans rich. I don’t need to tell you how many ways Trudeau has tried to piss off our trading partners. Shameful, that some one has the nerve to rub salt into the wounds in a farm newspaper (rag). Very sad state of affairs- the twisted cruel minds!

[farming101]

China has purchased just 6.32 million MT of U.S. soybeans year to date. This compared to 16 million MT purchased last year at this time . . . a 60% decline.

?

[furrowtickler]

Trump and the trade war are a big reason why commodity prices and economies are slowing!

But I don't expect you will ever understand how your beloved Trump could do anything wrong.

Our Ag industry should have jumped on the opportunity to fill the void .... like other countries have . But nope .... sit with our heads in the sand and meanwhile the Lady from Wahway still in her multimillion dollar home in Vancouver causing China to block some canola exports from Canada with mysteriously fake “pests” .... nothing being done for the past 10 months . Also the pulse tariffs in India should have been resolved a long time ago .... but nothing is being done there either . Those two factors alone have taken 30-40% net income of grain farms in western Canada . All out of our control while we have paid farm groups not lobbying hard at all in Ottawa about any of this . Now that’s frustrating....