Is the New Ag Commodity Price Plateau Real? – Ron Frost

When you turn on the TV or your computer, it is quite common place to hear or read about the new price reality for commodities.  Many of you that have been in this farming game for a long time have heard these kind of comments before.

Many people and organizations are wondering if this price appreciation has more to do with added speculators in the market which will ultimately lead to a short term blip.  Famers seem to be naturally conservative in where they think prices are going.  I have always detected pessimism with ag commodity prices when you talk to farmers.  Its hard to complain about some of the prices that are in the market place in 2010.

The question that many want answered is whether or not this so called plateau is real and sustainable when discussed with a longer time frame in mind.  I discussed this issue of a new price plateau with Ron Frost, Frost Forecast & Consulting.  I asked Ron what his opinion is and whether he think higher ag-commodity prices are real and sustainable in the long term.

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Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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