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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Chip McVickar who wrote (1415)3/2/2001 11:41:58 AM
From: Raymond Duray  Read Replies (1) of 12411
 
Hi Chip,

Thanks for the interesting notes on wheat. The futures research.com chart is positively Malthusian. When NatGas in storage's chart looked like this last fall, we has a 3X spike in price, except in the California spot market, of course, where prices went ballistic. Judging by the chart, we're going to free markets do to wheat what they've traditionally done to oil, gas, gold mine claims, etc. They're going to run amok. IMHobserver-of-historyO.

Was that tidbit about farmers substituting wheat for corn and beans from the WSJ article or was that your conjecture?
Back where I'm from, Illinois, that simply isn't an option. If farmers decide to back off from beans or Starcrossed Corn, they'll put in a legume crop for the nitrogen fixing and silage. They won't put in wheat. It would be impractical from a financial and from a harvest equipment perspective. I don't know how they view this in Kansas, anyone?

I'd say this was a Good Time to be an Organic farmer.
Nice to see you can still be a dreamer, Chip.

Ciao!
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