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Re: Oil price drop effect on Corn


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Posted by paul on December 18, 2014 at 16:20:51 from (70.197.193.247):

In Reply to: Oil price drop effect on Corn posted by RGMartin on December 18, 2014 at 12:45:01:

They want to bust up Russia, Iran, and Vensiualia, and slow
down the pumping in North Dakota. So the regular oil
companies are putting the squeeze on.

As long as corn is cheaper, ethanol will be fine. Unless crude
gets down into the $40 for any length of time.

For ag the bigger issue is the strength of the dollar. The coasts
of the USA are looking to do a bit better, allow some intrest
rates to go up a tad, and our ecconomy to look better. This will
make for a stronger dollar.

A strong dollar kills the middle of the country, we can't export
our raw goods wood, grain, ethanol, petro products. It gets
priced too high to other countries, so we sit with it, all go
cheaper. This makes the 2 coasts better off because their food
and fuel and fiber is even cheaper. And that makes the
ecconomy and this the dollar stronger.

Sending us in the middle of the country into a worse tail spin.

And that is where we are heading, barring something unusual
happening in the next couple years.

Ethanol will take care of itself, unless they put an increadably
squeeze on the countries mentioned.

Paul


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