When China owns the local elevator.Was talking to an branch elevator manager yesterday , said at their yearly meetings . Talk was China has or are really sniffen around to get some.Who is this guy Soros affiliated with.
Bingo...China went sniffin in SA and they figured out what they were doin......world food production and emerging market demand is real....this macro BS is a nice way to level things for awhile but reality is demand is growing and countries that can not feed themselves know the score......if you can cut the middle man out its easier....
In the end, does it really matter? With the global scenario for companies, it's tough to find where some begin and where they end. General Motors sells more cars in China now than they do in the U.S. Are they a U.S. company or a Chinese company? JBS owns several feedyards and packing plants in the U.S., but they are headquartered in SA. Cargill has several locations in SA. I'm not sure it should make any difference whether a Chinese company owns an elevator or not.
If the local elevator is profitable, there should be no reason for it to sell. Certainly if it is a coop, the local owners would want to keep ownership in their hands.
I don't really think it matters either, unless they are the only game in town. It would be interesting to see if their business dropped off. good thing cargill is a private corporation, Of course, if they owned a local elevator, they would have to learn to honor purchase agreements, hee hee.
Do you feel the same way about oil..........you guys are nuts if you don't think it matters........the next 100 years is likely to be defined by a commodity/natural resource war.......look at currencies, they are nothing more than a commodity and we are in a war there already........US is an excess producer of many commodities and natural resources.........that's a powerful card that doesn't get much attention.......
Give China the chance to control our grain and then production and its lights out.....
Japan is big in West Coast export companies. They own up country elevators all the way up the river system and on through Montana. They are major shippers for the Pacific Rim. They are cashing in on China too. $1 to $2 margins per pushel just for the usual elevation charge into ships isn't bad money.
Controlling grain and then its production isn't a reaslistic scenario unless you are talking about demand affecting the market as a whole - which is now global. China is not going to be using fear as a tactic within our sphere as it would be counter productive. They may use it in their sphere.
The world standard of living is fixed at a certain point......sooner rather than later we reach that point and our standard goes down as others go up......if they were allowed to gain other advantages it tips the scales even further........as for control, you start at the top of the supply chain and work down, so you don't have to own the land to control the system....look at the livestock industry.....
AG MOBILE
FREE E-MAIL NEWSLETTER
Of course, if they owned a local elevator, they would have to learn to honor purchase agreements, hee hee.
