EMY92 said:
I figured they would be rising with the demand now.
Grocery stores might have a run, but restaurants and wholesalers have drastically lower demand right now, so probably offsets the higher demand from individual consumers. Saw an interview with C&Js bbq in B/CS with the guy saying that even with them still offering pick up and drivethru orders, their business will still likely be down 75%, so restaurants and places like them wont be ordering near as much.
Quote:
Not just cattle. Almost ALL agriculture commodities are currently priced below the cost of production.
Cotton, corn, wheat, soybeans, etc. The trade war with China had been brutal to the ag sector before the current oil collapse and corona virus.
Agreed that most commodities are below cost of production and prices suck right now, but really the trade war that started back in 2018 hasnt had as big of an effect on prices as what you might think it has.
Corn for example had some of the highest prices in the last 5 years in 2019. Granted most of that was tied to the late midwest planting, but if you look at average corn price since the end of the commodity boom (so after 2012) it really hasnt been all that different these last couple of years, vs what it was in say 2014, 2015, etc. before the trade war. Same with cotton, cattle, and many others. Cant speak for soybeans, sugar, or a few others as I dont really watch those prices since so little Texas farmers grow them, but many of the standard row crops didnt see as much of a change as you might think. Soybeans are probably the biggest crop affected as I do know they had one of the bigger payments from the MFP.
But no matter which way you look at it, just like watching the stock market dive off a cliff, commodity markets havent been fun to watch the last couple of weeks too. If you look at a chart that tracks the dow or s&p, corn, cattle, and cotton all pretty much mirror the drop they took. Crazy times.