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there is no rule that grains need to lead!If fertiliser makes it...

  1. 653 Posts.
    there is no rule that grains need to lead!

    If fertiliser makes it too expensive to lay the fields then poor farmers stop laying fert.

    If they dont lay fert, their yields weaken (ie. less production).

    Less production means a reduction in supply to market.

    Demand out weighs supply, and prices rise.

    both the cost of fertiliser and the price for grains are unentangleibly (i know its not a real word) related.

    Besides, from my conversations with local farmers, there seems to be an increase in fert purchases, and my numbers (from BBY) have fertaliser prices clearly rising from their lows.

    I dont know when grain prices will recover, but i imagine it is likely gong to take a revisit to the food riots of last year before people take real notice.

    We will get higher grain prices, its just a matter of when.
 
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