Re: I am soooo cornfused
Yeah, this is where it pays to know where stocks really are because some won't ever come out on the market. So, a reading or a single carry out inventory can be misleading. I jusrt use the rule of thumb that 1/3 of wheat, rice and other grain inventories are usually locked up between India and China.
If the assumption is correct that China is 'porking up' on its inventories of corn and demand in the future is assumed to continue growing domestically then they are making a strategic move. Yes, at some time it will mean they will buy less than they otherwise might have w/o the reserves but probably at lower prices if they do, and certainly much lower prices than if they had to buy a bigger share of their needs later after it was apparent production had fallen off from Normal Production Variance.
It could also imply that China will continue the almost unbroken trend of buying greater amounts of soy and due to logistical reasons the US is the most reliable.
Re: Floor Talk January 16
I doubt that China can store any grain for long periods of time without a large percentage spoiling........Their stockpiles wouldn't last too long. If they are reporting that they have record large inventories, it is probably just a ploy to lower the prices for them to purchase more.........Geez, we are slow learners.