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k-289
Senior Advisor

Re: China doesn't make very many mistakes , they have an awful lot of people to feed.

Having  watched  this Asian  power house as some call it   the word  " shrewd " comes to mind  again  and  again ---    

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GoredHusker
Senior Contributor

Re: China doesn't make very many mistakes , they have an awful lot of people to feed.

Maybe I'm just getting old and senile, but it appears to me that China makes all kinds of mistakes.  However, they always come out smelling like a rose because we continually allow them to play with a stacked deck.  They washed out of some cole and iron ore yesterday because prices have fallen from where they bought.  This appears to be a mistake to me, but we just allow them to do this.  They do this all the time with grain.  I read yesterday where Tiny Timmy has opened up the market to only them where they can buy treasuries direct rather than going through the open market like everyone else.  This way they pay no broker fees, plus they don't have to disclose how much and when they buy. 

 

I'm betting there's a fair amount of guys that would love to have this ability when buying fuel and fertilizer.  I'm guessing some guys who paid 1000+ for fertilizer in 2008 for the 2009 corn crop would have loved to have washed out of those purchases when liquid nitrogen fell into the 250 range the spring of 2009. 

 

It appears to me that the U.S. is China's insurance policy.  They make purchases in the event they have a crop shortage.  If their crop is short, they take what they bought.  If they do not have a crop shortage, they just wash out of the purchases. 

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roarintiger1
Honored Advisor

Re: China doesn't make very many mistakes , they have an awful lot of people to feed.

We must be slow learners here in the U.S.

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rayjenkins
Veteran Advisor

Re: China doesn't make very many mistakes , they have an awful lot of people to feed.

Someone please shoot me in the direction of this China corn story that BA Deere mentioned

 

news story or something else??

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BA Deere
Honored Advisor

Re: Floor Talk May 23

Ray, i can't find a news story on it, they're talkin' about it on newagtalk. My guess is a "newsletter" started it. But like you, i'd like to see a news article on it. Anyone?
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4wd
Senior Contributor

Re: Floor Talk May 23

I think it is rediculous. Use common sense.  You can't tell a grain consumer to turn it off till new crop comes in. We're talking 3 months at least, probably 4. Sounds like a rumor started by some stupid government lackey.

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idalivered
Advisor

Re: Floor Talk May 23

BA, I did several google searches on that and couldn't come up with anything. I'd like to know myself. Just remember that everything you read on the internet is true. right?? we need to call "bull!#&t" on the agtalk marketing page.

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BA Deere
Honored Advisor

Re: Floor Talk May 23

Hey Ida, I think the Chinese look at the $1.25 difference in old and new crop beans and deside to sweep the granary more thoughly and switch to new.  However to have the USDA give them a wink and nod that they got their back is helpful.  But as always Mother Nature bats last.

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