Canary Seed Sell Signal

[Guest]

new varieties a little less itchy, and yield considerably less around here

[farming101]

Yes and no. In some markets like Mexico its really important. They feed it pure to their caged birds. Mexico is 25% of the market. This adds to the price inelasticity which canary is known for. But at the same time, traders that import the grain don't want to get caught with inventory in a falling market as they will take a hit. They want to sell everything they can at these values and be left with no product as they expect high prices to fall back down to 30-40 cents eventually. We have to keep in mind that average person in México has a very low annual income/person so prices eventually do matter. We have alot of similar demand throughout Latin America from people whose income has to be a daily challenge.

EU blends alot of the canary (also 25% of the market) with other grains so will do least cost formula to reduce their costs like any other business would. This is what causes price elasticity in high value markets.

Thanks for the comment. These realities about substitution, affordability and hot potato commodities that nobody wants to own for any longer than they have to can be applied to a lot of markets.