When China Stops Buying . . . .

[errolanderson]

Chiina is the buyer of about 50 percent of all global commodities. From steel to copper to grain.

China right now is in an infrastructure boom. Everything is bright, shiny and new. Shanghai now dwarfs Vegas in glittz and lights.

But this clock is already ticking, just like in 2012, when China’s buying boom went bust. The last major commodity boom was 2008 to 2012. Then global commodities went into a slide for several years. Now this buying binge which largely caught the world off-guard . . . . .

Covid, weather and ASF impacting China’s hog production are all apart of the make-up of this buying spree. But this is a cycle like most everything in life and markets (IMO).

[bucket]

Do you believe they won't feed their people????

[TASFarms]

China is buying grain that isn’t even produced yet.

[shtferbrains]

If China has bought a large part of the inventory why whould they want it devalued?
If they get all they need why make it cheaper for the last buyers?

[Guest]

Oops , someone just addressed the elephant in the room
These are not stupid people
The fairy tale about the glut of food in the world has been blown wide open
They tried cancelling deals and price went up

[Rareearth]

And all the buying actually stimulates the demand and inflation to continue the infrastructure development.

[Rareearth]

Quote from Successful Farmer magazine (usa)

The current stock-to-usage figure (expected leftover supply at the end of the marketing year divided by usage) is near 3%. Historically, this low of a percentage suggests soybean prices above $15. Currently, soybeans are trading under $14 with continued strong weekly export sales.

Projected carryout is currently 140 million bushels, and some are debating it to be near 100 million. Is the U.S. on the verge of running out of inventory? At some point, one may question the U.S. exporting additional inventory when domestic supplies could become critically tight for our nation’s own food security.

[Partners]

Looks like China will own half the world when this shit show is over..

[sumdumguy]

When you realize that the carry out is in the 3% range, it quite dicey when a little drought here and there causes carry outs to go negative - could happen pretty easily.

[GDR]

Looks like China will own half the world when this shit show is over..

They maybe already do. Also heard on talk radio this am that there are 1.5 million CCP members impeded around the world in education, industry and government.