I'm starting this post about 530 am, on my second cup of good black oil.
The stock market, and oil are both lower overnight. June Crude oil futures are currently down 4.6 a barrel at 15.76 dollars per barrel this morning. This (oil) will be the main story today, and for awhile. What does cheap oil mean? Different things for different people. I hear a lot of people talking about how cheap gas will be, which is true. Cheap gas, better for the consumer, cheaper for the farmer, and the rancher. Cheap gas/diesel, and other inputs that are most likely going to be cheaper. This other inputs include hay, which is another big one. Cheap inputs will help profit margin. The flip side usually is, cheap inputs are fed to cheap cattle, cheap hogs, etc. So what to we do? We Raise the genetically superior cattle, that convert feed in pounds efficiently. To book end this rambling, I just want to say, prices don't dictate profit margin. Have a nice morning, and tune into Burning daylight for the newest market report!