Now the other shoe drops.
Apparently, the Chinese have given up defending the Yuan. It was inevitable as their economy slowed, they knew that some point they would have to. It was inevitable.
And all the other Asian currencies are & will inevitably continue to follow them down.
But what that means for the US farmer is, even if we don't sell grain to China, grain prices, corn, soybeans and wheat will have to fall as the US dollar inevitably gets stronger & Asian countries currencies get weaker.
Re: Now the other shoe drops.
It’s gonna be something to drive the market down no matter what... all u hear is China this and China that I don’t care what anyone says they’re still buying our beans they’re not gonna starve !!! Those beans may say they’re goin to Argentina but as soon as that boat gets outta sight it makes a hard turn right to China it’s all the same just the paper trail has to match... and the crop that is growing is one of the worst ever I’ve put a lot of miles on this year and haven’t saw anything great but a lot of bad and a lot of nothing!! But all said and done at least the dollars we have will be worth something... we’ll see if they can figure out a way to say a 170 and 48 avg in the end if they do all I can say is most of Ohio and southern Michigan will be lucky to see half those numbers on the acres that are planted without an early frost
Seems to Me
Like, when the yuan drops from 7 yuan per $, to say 5 yuan per dollar that the yuan is then just close to 30% Stronger than it was back at the old 7 to 1 rough benchmark.
Soon the stronger currency trade of the yuan basically overcomes trumps sales duties, tariffs etc.