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Note on the increased short term debt

Mike, is not the increased short term debt simply a function of ADM using mark-to-market accounting on the grain in storage and increased debt load is simply moving in line with price increases. Basis and carry charges ADM will receive should move higher if interest rates move higher to offset the cost of carry. The grain elevators I work with are seeing this across the board, the higher short term debt should be properly margined by a fully hedged commodity so unless the cost of carry/basis gets upside down I do not see the concern with the increased short term debt.

Submitted by esebille on Wed, 2008/07/02 - 9:21pm » 

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