Posted on 01/28/2021 8:38:23 AM PST by SeekAndFind
Reuters quoted Chicago-based consultancy AgResource Co. president Dan Basse who expects Chinese imports of corn and soybeans will continue to be sourced from the US in more significant amounts. This is excellent news for American farmers and may result in a continuation of upward prices.
Grain demand from China in global markets has created upward momentum in corn and soybeans prices since late summer. Earlier this month, corn prices hit 6-1/2 year highs amid increasing Chinese demand and export disruptions in South America.
Basse, who spoke at the Paris Grain Day conference earlier this week, said China's soybean imports could rise to 110 million tons in the 2021/22 crop year, exceeding the 103-105 million tons in the 2020/21 crop cycle.
Reuters shows China has already imported a record amount of soybeans in 2020, breaching the 100 million ton mark.
While China rebuilds its pig herd, decimated by pig ebola where at least half of the country's herd was wiped out, this will undoubtedly drive grain (corn and soybean) imports higher in the 2021/22 crop year.
"We've been talking for years about trying to find a new demand driver and that demand driver is now coming from our friends in China," Basse said.
Rosa Wang, an analyst with Chinese consultancy JCI, told the conference that the phase one trade deal would benefit the US as Beijing will be forced to source more farm goods from the West.
Besides corn and soybeans, Wang expects China to increase wheat purchases, a move that would help it abide by the minimum purchase requirements for farm goods laid out in the trade agreement.
Basse said supply woes and increasing Chinese demand for grains in global markets could continue to push up prices. This would be beneficial for US farmers, increasing their potential margins, allowing them to plant more corn and soybeans in the upcoming growing season.
He forecasted soybean prices could reach $15-$17 a bushel and corn $5.70-$6 this year.
... and of course, there's always a downside to rapid food inflation.
We recently discussed how food price inflation has risen for the seventh consecutive month.
Why do you think China has sent out military vessels with their fishing fleet as they fish in other nation’s waters?
I’m glad US farmers will benefit.
But basic supply and demand — if more US food leaves our country and goes to China, our prices for the food that stays here will go up.
Joe says it’s a Win-Win — good food for China, high prices for Americans. HAHAHAHAHA!
China just “punished” Australia for refusing to kowtow to their threats when they insisted that the latter apologize for criticizing China’s handling of COVID-19, as well as human rights issues in Xinjiang and Hong Kong.
How does she “punish” Australia? By refusing to buy her agricultural products.
Well, it just so happens that China NEEDS the food that they refuse to buy from Australia, so where else can she go? Lo and Behold, the USA is another source, so here we are.
This appears to be a working example of "picking them off one at a time if they respond to our aggression".
Certainly not my field of expertise, but it sounds like America and its allies should strengthen its alliances, at least in the face of global commercial threats.
BTW, history suggests we should not sell our latest farm machinery technology to aspiring global bullies (see Davos) - no matter how attractive the market may appear. Perhaps we ought to wait for a change in government.
On 21st century America we burn corn for fuel.
Our food supply is controlled by big-ag. None of it is good for our country. Which is why you experienced huge cost increase in beef, pork and chicken over the past 20 years. Much of big-ag is foreign owned. China is buying farmland. Brazil has bought meat packing. The poor family farm is being squeezed out.
Chinese buy strategic land in Texas, U.S. intel may not be pleased
A retired CIA officer outlines the threat.
https://www.lifezette.com/2020/06/chinese-buy-strategic-land-in-texas-u-s-intel-may-not-be-pleased/
China “Pwns” Us: How the Chinese Are Buying Up America
I read a comment from a farmer who said Bidens policies are already driving down the price of his crops to the tune of a hundred grand loss. Now yo know why.
How China is buying up America’s food supply
https://www.americanthinker.com/blog/2020/05/how_china_is_buying_up_americas_food_supply.html
I was in Freetown when the Chinese fishing fleet came in, paid some bribes to the SL government, then “literally” raped the fish breeding grounds right off the coast. The locals saw their daily subsistence fishing catches drop dramatically within weeks.
And the government told them it was because of global warming. All while the Chinese were buying food and gas and selling 0% of their catch in the local market. everything was shipped back to China in huge freezer ships that stayed right outside the international waters limit.
Joe and the (C)lowns (I)n (A)ction propagandists and business morons who have Psaki as a spokesperson without a clue.
And if Trump was still in office he could slap an export tariff on food shipped to China.
But we’ve got biteme who’ll probably give them a discount.😝
Hell, Biden will give it to them for free and screw the farmers.
The Indonesians and Peru have been sinking those Chinese fishing boats right and left. They are like a plague.
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