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Farmers weekly 1974
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<blockquote data-quote="ollie989898" data-source="post: 7672924" data-attributes="member: 54866"><p>You folk are always banging on about the price of X.</p><p></p><p>Only in the last 40+ years the number of people producing raw materials has sky rocketed and so supply has increased exponentially. Few commodities have experienced any real gains in the same time frame.</p><p></p><p>The reality is that Europe is a particularly carp place to grow cereals or oilseeds- being wet and humid they get diseases for a past time. What you actually want is a dry climate with very modest rainfall which would let you grow cereals with basically fudge all disease. Farmers across the globe are growing wheat with fudge all fungicide because their climate is more arid so they don't get as much disease.</p><p></p><p>Only in the peculiar subsidy driven system that is the EU has massive herbicide or fungicide spending been made economically possible. You tell an Australian/Asian or American cereal farmer what your annual herbicide or fungicide spend is and they would laugh in your face because to them spending near £100/acre on chemistry would never ever pencil in a million years.</p><p></p><p>Much the same has happened worldwide to oil, metals and other commodities, whether hard or soft. The higher the market price the more players can enter the market. I've posted graphs before from FinViz showing the same.</p></blockquote><p></p>
[QUOTE="ollie989898, post: 7672924, member: 54866"] You folk are always banging on about the price of X. Only in the last 40+ years the number of people producing raw materials has sky rocketed and so supply has increased exponentially. Few commodities have experienced any real gains in the same time frame. The reality is that Europe is a particularly carp place to grow cereals or oilseeds- being wet and humid they get diseases for a past time. What you actually want is a dry climate with very modest rainfall which would let you grow cereals with basically fudge all disease. Farmers across the globe are growing wheat with fudge all fungicide because their climate is more arid so they don't get as much disease. Only in the peculiar subsidy driven system that is the EU has massive herbicide or fungicide spending been made economically possible. You tell an Australian/Asian or American cereal farmer what your annual herbicide or fungicide spend is and they would laugh in your face because to them spending near £100/acre on chemistry would never ever pencil in a million years. Much the same has happened worldwide to oil, metals and other commodities, whether hard or soft. The higher the market price the more players can enter the market. I've posted graphs before from FinViz showing the same. [/QUOTE]
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