china and beans
4 responses | 0 likes
Started by mcfarm - Aug. 7, 2018, 11:10 a.m.

oil world reported that china may have to resume purchases of US beans within weeks.....go them on the run I hope...now sink them

Comments
By metmike - Aug. 7, 2018, 11:58 a.m.
Like Reply

China’s Taste for Soybeans Is a Weak Spot in the Trade War With Trump


https://www.nytimes.com/2018/07/09/business/china-trade-war-soybeans.html


"China buys so much soy from the United States — $14 billion last year — that it can hardly switch to new suppliers overnight. Foreign-grown soybeans are a key source both of low-cost protein for feeding livestock and of cooking oil for Chinese kitchens."


"China is pressing its own farmers to grow more. But the math is daunting, and the obstacles are formidable.....

China’s increasingly wealthy people want more and better food on their plates. But the country’s farms are generally too small and underdeveloped to keep up.....

Nearly 90 percent of the soybeans China consumed last year came from overseas — more than 100 million tons in total. (Mexico, the world’s No. 2 importer, bought just five million tons.).....

Replacing even a chunk of those with homegrown beans may prove as herculean a task for China as weaning itself from American microchips."

By cliff-e - Aug. 7, 2018, 12:54 p.m.
Like Reply
By tjc - Aug. 7, 2018, 1:08 p.m.
Like Reply

  My suspicion is China already has booked, at a considerable DISCOUNT, its needs much like Russia did decades ago.

By metmike - Aug. 9, 2018, 11:15 a.m.
Like Reply

The data for this report is several weeks old and was collected when corn and beans were at their lows and before the monster wheat rally:

Producer Sentiment Plummets on Price Weakness and Trade War Concerns


https://ag.purdue.edu/commercialag/ageconomybarometer/producer-sentiment-plummets-on-price-weakness-and-trade-war-concerns/


You can see how drastically that views have changed just since then based on MUCH lower price expectations in mid July compared to today:

Figure 5. Expectations for Dec. 2018 CBOT Corn Futures and Nov. 2018 Soybean Futures Prices Between Mid-July and Fall 2018.

Figure 5. Expectations for Dec. 2018 CBOT Corn Futures and Nov. 2018 Soybean Futures Prices Between Mid-July and Fall 2018.