> My point is -- I don't think food prices will shift much as long as the buffer is positive. If our margin narrows -- less livestock, more of it grass fed on marginal lands, grain spending less time in silos before being processed into food -- to two or three sigmas of food security, I don't think that you'll see food prices rise significantly, from market pressure.
The US is a strange beast when it comes to Agri. It's worth noting that there are conditions under which we are -destroying- surplus crops due to price controls rather than flooding the market.
Which to me is a bigger concern; this 'buffer' may cause price shifts to come with less warnings, and perhaps the first 'shock' will be a bit more than we would expect.
The US is a strange beast when it comes to Agri. It's worth noting that there are conditions under which we are -destroying- surplus crops due to price controls rather than flooding the market.
Which to me is a bigger concern; this 'buffer' may cause price shifts to come with less warnings, and perhaps the first 'shock' will be a bit more than we would expect.