Posted on 03/24/2020 8:41:03 AM PDT by Oldeconomybuyer
EVANSVILLE, Ind. -- China in the last week made several large purchases of American grain, sparking hope in the farming sector that the nation intends to make good on its promise to buy billions of dollars worth of U.S. agricultural products this year, industry groups say.
"It is great to see China back in the market," said Ryan LeGrand, the president and CEO of the Washington, D.C.-based U.S. Grains Council, a trade group that represents corn, sorghum, barely, distillers grain and ethanol. "We hope it is the start of many more purchases."
Chinese buyers ordered more than 750,000 metric tons of American corn Thursday and about 1 million metric tons of sorghum earlier in the week, LeGrand said.
On Friday, the U.S. Department of Agriculture announced China also bought about 340,000 metric tons of wheat.
These are the largest single purchases of wheat and sorghum China has made since imposing high retaliatory tariffs on U.S. farm goods in summer 2018, the groups say.
"The market has been waiting for this," said Steve Mercer, a spokesman for U.S. Wheat Associates, a trade organization for the wheat industry based in Arlington, Va. "We'll see where it goes."
Following the purchase, the price for wheat spiked from under $5 per bushel to more than $5.50, according to Chicago Mercantile Exchange figures.
(Excerpt) Read more at upi.com ...
The media is going to be drinking early today.
Trump has them by the shorthairs. They are his bee-yaatch now.
Throw old Uncle Sam a bone.
China is also buying a lot of pork and cotton. The US also sells them animal skins from slaughterhouses.
Why are we thanking them? It was part of the phase 1 deal..
They have to buy. They need the food. China’s had some bad harvests.
https://grains.org/markets-tools-data/tools/converting-grain-units/
750,000 metric tons of corn
1 metric ton = 39.368 bushels
1 million metric tons of sorghum
1 metric ton = 39.368 bushels
340,000 metric tons of wheat
1 metric ton = 36.7437 bushels
12,492,858 bushels at 5 vs 5.5 = $62,464,290; vs $68,710,719
the price for wheat spiked from under $5 per bushel to more than $5.50,
That’ll make a lot of hand cleaner.
China has locusts, they’ll need capitalist corn and soybeans, even with their reduced population.
Plus they had the big pig herd die off from actual swine flu, IIRC.
Simple fact is - China needs grain, and will always need grain (and probably in increasing amounts as its population ages and urbanizes)
“Chinese buyers ordered more than 750,000 metric tons of American corn Thursday and about 1 million metric tons of sorghum earlier in the week, “
That’s a lot of sorghum moonshine.
Did you ever get the idea that the United States is actually paying for that grain purchase now that the ChiComs have pretty much wrecked our economy?
Still winning
And, coincidentally, Trump stops using the words “China Virus”.
I think he made a deal!
Topline: After days of calling coronavirus the “Chinese virus” despite advice from his own public health aides and the World Health Organization, President Donald Trump abruptly stopped using the term for the first time during a White House press conference on Monday.
The trade deficit with China is $617 billion. Because of the president’s tariffs the trade imbalance was reduced in 2019 for the first time in six years. The bad news is that it was only reduced by 1.7%. We still buy way, way too much Chinese garbage.
It’s the media that wrecked our economy over this pseudo pandemic.
The markets are down. Has China been buying at a bargain price?
Maybe Reagan with grain to Soviet Union in a bad year, bur probably not
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