I'm confused again/still

[ray h.]

     You guys have seen lows,in the wheat pit. corn and soy I realy do not know. Production cost,and farmer reaction to an old pricing out of the 90s will with the uncertain production of a lot of the world will eventualy punnish the market beond all beleif. The current capitalization is an gratification of need,an an incentive to produce. I  do not know about corn,soy,or some other crops,but with wheat, anything below $6.50 is going to lower production! (When I say the 90s,I am talking about the old crap of a 4 or less in front of it.Tradesr oughtt to try some of this and see what happens!

[sw363535]

I need corrected ----China has 1.34 billion people.   If 1/3 of them were buying cinnamon rolls and our corn that would still be 1.5 times the total population of 312 million americans.

And they would still have a cheap labor force of 850+ million to keep their food cheep.

[Palouser]

Grain and soy have been consistently much higher in China than in the U.S. It's true of many importing countries that also produce - such as India. The internal price is so high they must subsidize exports, if they have any to do so. China and India have high tariffs/taxes for imports in order to encourage domestic production. In addition to the approximately $1.50 to get the grains to the West Coast. Exporters on the Werst Coast have had anywhere from $1-$2 elevation margins on wheat to load a boat.

[Palouser]

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