(click on image to enlarge)
Looking at California's "income over feed costs" suggests yet another race to the bottom is approaching. The graph only covers through August 2010. September corn prices will drive the numbers lower than anything shown on the graph, all things being equal.
I'm sure Freud would have a term for all this. At the moment, this is what passes for normal thinking. Crazy!
John this shows the fallacy of the margin insurance plan. Why do we want to be tied to the price of corn? We are avalued added commodity we take the basics the land gives and turn them into a humanly consummable food. IF we allow ourselves to be tied to feed prices we will only allow large proccessors to control their costs by manipulating one market CORN. This will mean we are at the whim of the chinese the funds and the large commercials along with the buig banks. Why not tie our product to the consumer? Lets push for the processor to tie our price to his say milk will be 65% of retail? Makes way more sense to me!
ReplyDeleteOOPS that is the problem that makes sense and NMPF doesn't push anything with common sense atached to it! JR