They got their abacuses out and realized the US can tariff $400 billion more in Chinese junk that we can live without than the needed food they do need from us. That`s a show of weakness on their part. Just buy a little more from us, preferably pork & beans so we can call it a win and they can go back to screwing us, only not quite as bad as in the past.
"With all this tariff talk you would think what has happened must be an anomaly - history in the making. So back I went, doing the math and normalizing the price pullbacks in beans for the last 20 years.
many year's worse than this one , and no tariff threats those years
Seems the price break used to happen over 4th of July weekend.
Then it moved to last few days of June.
Then middle of June.
Now with no open outcry system and only dimly lit basements with blurry eyed computer geeks running things, all trying to get a jump on the next computer commodities gamer, the time line has moved back to end of May.
Well they throw out a yield number like "182" nat yield in March and then it`s up to us to have some sort of wide spread weather problem to prove them wrong, until then 182 or next year they'll float a higher number. Now all that needs done in the trade`s eyes is the planter tracks across the field and DuPont & Monsanto takes care of the rest. I gotta admit they`ve done pretty well with that trading model, as Mark Gold says "don`t bet against the American farmer!", that and the usual +2 billion bushel cushion from last year we give them, they don`t have to worry about ever over paying for a crop.
And yet, food prices do not reflect lower farm prices......(except for milk) But you can bet at the first hint of a farm price rally, food prices will go higher.
I know we don`t want 'government involvement`, however a 12oz box of Corn Flakes at Walmart is $3.38. How about a law that the price of a 56lb bushel of no.2 corn can not be purchased for less than a 12 oz box of cereal?