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Potash Prices being bid up by speculaters

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Posted by John Liebson on Tuesday, May 17, 2016 9:48 AM
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Posted by Norm48327 on Sunday, May 15, 2016 3:39 PM

Euclid
So grocery product producers are being squeezed by rising commodity prices and the limit of consumers to pay the necessary retail price increases. Something has to give, and what gives is the quality and value of the food products such as frozen entrees, canned soup, etc. The formulations for these types of products are rapidly deteriorating in terms of quality, quantity, wholesomeness, and nutrition. Producers hope that consumers, who pay a lot of attention to price increases, will not as readily notice the dropping quality.

Can't help but agree with that analysis. I hate to grocery shop because I don't like to be seen crying in the checkout line. Crying Just kidding.

You certainly are correct regarding quality. The quality goes down, the price goes up, and the portions get smaller. I'll leave the frozen garbage for others. I'm pretty damned good in the kitchen so I won't starve.

Norm


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Posted by Euclid on Sunday, May 15, 2016 3:23 PM

Speculators are the effect, not the cause of rising prices.  I think the actual cause of sharply rising commodity prices is the inflation resulting from the Fed’s recent quantitative easing, also called “printing money.”  It is a fundamental result of flooding the economy with money that nobody has earned. 

Price inflation is quite noticeable in grocery stores, but it is limited by the ability to raise retail prices.  Consumers will only pay so much for an item.  After that, they will substitute something cheaper, or consume less of it, or stop consuming it altogether. 

So grocery product producers are being squeezed by rising commodity prices and the limit of consumers to pay the necessary retail price increases.  Something has to give, and what gives is the quality and value of the food products such as frozen entrees, canned soup, etc.  The formulations for these types of products are rapidly deteriorating in terms of quality, quantity, wholesomeness, and nutrition.  Producers hope that consumers, who pay a lot of attention to price increases, will not as readily notice the dropping quality. 

 

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Posted by Paul_D_North_Jr on Sunday, May 15, 2016 3:19 PM

Won't affect the actual shipments much. 

Speculators and futures market are all about before the shipment - sometimes months before.  The last thing they want is to have to actually take delivery of the commodity.  What is a Wall St. investment bank going to do with 10,000 tons of potash on its front steps ?

- Paul North.  

"This Fascinating Railroad Business" (title of 1943 book by Robert Selph Henry of the AAR)
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Posted by tree68 on Sunday, May 15, 2016 1:22 PM

CandOforprogress2

and my grocerys $$$$$ are going up...time to start a garden

Ah, the futures market...  

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Posted by CandOforprogress2 on Sunday, May 15, 2016 11:23 AM

and my grocerys $$$$$ are going up...time to start a garden

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Posted by Electroliner 1935 on Saturday, May 14, 2016 9:45 PM

Looks like speculators are playing. Or the Hype is being started.

 

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Posted by CSSHEGEWISCH on Saturday, May 14, 2016 6:51 AM

Commodity prices can be quite volatile at times, this is not that unusual.

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Potash Prices being bid up by speculaters
Posted by CandOforprogress2 on Friday, May 13, 2016 12:41 PM

Potash which is essntial to factory farming and a major sourse of rail traffic is being toted as a investment and prices are being bid up-

http://investingnews.com/category/daily/resource-investing/agriculture-investing/potash-investing/

 

http://www.futuremarketinsights.com/reports/potash-ores-market

http://marketrealist.com/2016/05/weekly-update-potash-prices-rise-benefit-producers/

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