What a hornet's nest. I should just keep my mouth shut, but I have a few thoughts too. Quite likely, misplaced. High corn prices are also due, in some measure, to the weak dollar. Exports are up because our grain is cheap on the world market now. That drives up the demand for our grain. Didn't I just read the other day, that OPEC wants to use another currancy to base oil prices on than the US dollar? Due to its low value?
Upwardly mobile chinese are demanding better quality beef, with a higher marbling content. Causing them to buy more corn to finish their fat cattle. The developing world is also consuming more of the available oil supply. I listenened to an interview with T. Boone Pickett on the way home from the farm Sunday evening. He said that we can't drill and refine our way out of the global demand for oil, and its resulting high prices.
I heard an interview with the spokesman of Saskatchewan's largest potash mine on the way home today. They are the world's largest producer of potash. He also said, the chinese demand for better quality beef was creating a market shortage and higher prices for the product. What was it he mentioned? They were producing 175,000 more tons this year than last? Something like that. It isn't much of an increase, is it? And he said they were running pedal to the metal, 24/7 to do that little bit more.
We used to have cheaper prices for diesel than gasoline. Europe had a surplus supply of diesel and we would buy it from them. But some years back, they turned proactive and pushed for a switch to diesel powered vehicles. Now there is no surplus over there. They got in front of us on that one. South America developed sugar cane based ethonol and have quite a surplus of production. But we can't import any of it, due to federal tarrifs, which makes it uneconomical for our markets.
I was at the sale barn a few weeks back. They sold off three pod loads of Natural Beef calves.....headed for the feedlots in Kansas. How much more did they bring? 10 cents a pound on the first lot. It fell to 7 cents on the final lot.
Here is my beef with the feeder calf/feedlot issue. There have been laws of the federal books for decades that make it illegal for a killing plant to fatten calves. None have ever been enforced, that I know of. The new farm bill had a provision that would prohibit killing plants from possessing/feeding cattle for more than 14 days before slaughter. The republicans killed that provision. Likely due to lobbiest money.
Want to get your suit and tie on? Go tackle the government and kick them into submission. Fair is fair. That's all we want. I'll shut up now and try to keep myself from getting in more trouble. I'm not in favor of any political party. In fact, politics, earmarks and special interest is a poor way to run a country. :help: It's all a mess. Everywhere we turn, things are upside down with the economy and politics.
