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> The pros think that demand is going down due to economic activity Does that make any sense? Do people eat fewer grains when economic activity goes down?
by throwawayjava 6y ago
> The pros think that demand is going down due to economic activity
Does that make any sense? Do people eat fewer grains when economic activity goes down?
- jldugger 6y agoPeople aren't the only consumer of grains. You have biofuels, as well as livestock feed. Biofuels are likely having a bad time with the breakdown in OPEC. With livestock, people might eat a bit less meat, but I donno if that's really gonna move much. But directly to your point, grain alcohol products might drop a smidge with restaurants out of commission for months. Even if people only drink marginally less, they'll be paying way less for it and I imagine some of that margin cut trickles down the supply chain. More darkly, there may be 1 percent fewer people around to eat bread, steak and drink vodka.
- kasey_junk 6y agoMeat takes a huge hit in economic downturns. Meat is what eats the grains sold in futures markets.