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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (2453)	3/1/1998 11:54:00 AM
From: Michael	Read Replies (1) \| Respond to of 9980

Zeev, Thanks. That comment about commodities being priced at the margin is a very astute one. Obvious when you think about it, but its never occurred to me before. I too have no idea about figures for overall supply/demand balance in food crops. Anecdotal evidence gives some weight to the projection of a shortage. I know for a fact that there have been serious droughts in SE Asia and North Africa, and I remember reading that the El Nino rains have also caused crop problems in other parts of the world. However assuming it is true my thesis would be. Demand for Farmer Macs credit is a function of how attractive farms are as an investment, which in turn relates to the price and profitability of agricultural crops. Therefore rising crop prices are good for Farmer Mac <QED> This seems a bit "too" simple and I am wondering if there is some other factor(s) I should consider. Regards Michael