Spot Barley $125/Spot Corn $150/ MT

[cowman]

Maybe a little bit off here but I always figure the big solution to high prices is the resulting wreck of low prices? Think about that?
The price of wheat /barley goes sky high...great for the grain farmer...devastating for the hog/beef farmer? Drive them under and where do you go from there?
Always more dumbies ready to take the risk, right?
Well I hate to tell you this...we are rapidly running out of dumbies! Check the farm age in this country? No new dumbies!
Have no fear you can always sell to the rest of the world, right? That would be the rest of the world that doesn't have a pot to piss in or a window to throw it out of!

[silverback]

I haven't seen a lot of trouble in the feedlot side of things for a long time Cowman.

The disaster of BSE was not very equally shared with the big feedlot boys, or even some of the smaller ones. When barley was being bought by them for $2 or less, they were making out quite well.

The grain side of the equation needs some years of decent prices to make up what has been lost, namely equity.

[Pulseman]

I am so very much worried that higher grain prices will cut in to the profit of the poor feedlot multies, Cowman. Thus gents have stolen from us long enough, the problem is fair share of the cake. But it seems when Bly is $1.50 you never complain.

[NeilS]

Hey cottonpicken

I see it much the same way as you do.

I talk of $8 wheat this year and get a lot of scepticism, and some derision. None-the-less, I am very bullish on ag commodities this year and for the next few.

Neil S

[WRAPper]

well cottonpicken I hope actually and would be quite happy to be wrong, again it's nicer to be lookin at how high rather than worrying about how low. Keep those sell stops in place and let er ride.

[cowman]

Pulseman: Maybe it is the area I live in but the hog farmer is fast becoming an endangered species! Also the small farmer/feeder has evaporated from the market?
Again maybe only due to my area, but a good number of cow/calf operations have ceased to exist...and very few picking up the slack.
The fact is if grain goes up the feedlot has to cut the price of calves? No other solution if they intend to stay in business?
And despite what some people might think here the cow/calf business isn't all that great! The cow/calf operators going out of business are planting grain..or actually renting out their land to larger grain farmers. Higher feed costs will just accelerate the decrease of the livestock sector.