Friday, December 12, 2008

Finally I'm Right

Ever since the breakup of the Soviet Union, I've been figuring ag prices would be pressured as Russian farmers became more efficient. Fortunately, I've never put that prediction in writing because I would have been wrong more often than not. But here's an indication the basic thought wasn't bad (via farmpolicy):

(In a related article regarding wheat, Reuters news reported yesterday that, “Russia faces a grain glut in 2009 as it prepares to harvest another bumper crop, putting domestic prices under pressure and overwhelming storage capacity already stretched by this year’s crop, the biggest in about 15 years…[F]armers in Russia, the world’s fifth-largest grain grower and exporter last year, have invested in new technology and land to increase their harvests and take advantage of booming world commodity prices that have since plummeted sharply.”)

There's also a discussion of transition discussions on ag there.

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