Discussion in 'Ag Futures' started by ETW77, Jun 1, 2007.
Anybody know what is really going on?
I thought this thread was about lactose intolerance.
Gar prices going up along with the grains and so delivery and operation costs go up. Look for another 25 - 40% more to the upside.
Blocks and barrels are tight, whey is still over 50 cents and Class IV is over 21 in the front. This is pulling raw milk from the III's.
Blocks seem to be particularly tight. On both thursday and friday Iowa was able to walk up the cash in blocks without any challenge. Kraft sold a barrel on friday (I don't remember who sold the other two) but it looked like a French defense.
If the components stay up here, look for the November to tighten on the Oct. (This spread has worked for months - Aug/Sep, Sep/Oct etc).
What's a French defense (besides 1.e4 e6)?
looks like a normal cyclical high.
good luck buying here!
I've noticed yogurt prices at my grocery store have definitely gone up recently. Use the be .99, now they are pricing at 1.09 and even 1.19 sometimes. Not a big deal of course but I definitely noticed.
My guess (and it's only a guess) is that corn price was high, wheat price is currently high, soybean price is high and oat price is high. Cows have to eat something and whatever it is, the price is probably high. So the price of cows (cattle) is high and the price of milk (milk comes from cows) is high. I observe in the supermarket that cheese prices are also high. I expect cheese price to be high because cheese is made from milk. Butter is also made from milk. Butter prices appear to me to be rising.
Another way to look at the high price of commodities is to examine the US Dollar Index. The value of the dollar appears to be decreasing.
So maybe what I am observing is not so much higher prices for agricultural products but decreasing purchasing power of the U.S. Dollar.
What the frig do cows care about the value of the USD? Seems to me they just got tired of somebody yanking on their tits all day and said enough is enough.
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