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Senior Contributor
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Registered: ‎05-03-2010
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OptionEye...Dec 20th

Good morning everyone.

 

Another down day....Corn and Beans down 14, wheat down 21.

 

Precipitation and lack of demand are the stories doing the rounds this morning. It's that time of year and we are going to get moves like this. It is the first time that wheat has been below $8 since July 3rd.

 

GDP came out at an astounding 3.1%. Take a picture of it cause it might not be there long.

 

Stocks slightly negative. Gold lower on lack of inflationary pressures. The world is painting a very odd picture.

 

 

 

Senior Contributor
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Registered: ‎09-27-2011
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Re: OptionEye...Dec 20th

Does the new Japan government affect our grains market?  Will the increased spending by the new Japan government increase imports of corn?

 

Or will this new spending cause Japan  to default on it's Bonds?   I worried because I believe Japan is one of the biggest importers of US grains.

Senior Advisor
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Re: OptionEye...Dec 20th

Guaranteed - Japan will buy the same amount of grain or more, as usual, under any scenario except the end of the world. That's how it works. The economic ups and downs usually have little to no effect on food purchases unless it's an extreme situation - such as Zimbabwe.

Senior Advisor
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Re: OptionEye...Dec 20th

Could you expand on the odd world picture?

Senior Contributor
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Re: OptionEye...Dec 20th

I quess, I  believe that some very large countries will be forced to default on  their bonds outstanding.  How soon for Japan?  I think the clock is ticking quite loudly.  Will this cause a war,  I don't know. Many people  believe wrongly, that inflation will save government high amounts of debt.  As the new debt goes up the inflation will affect interest rates, such that the government will need to borrow to pay the interest. Or default.  My question is will Japan be in the position to purchase grains?  I believe Japan will be put on cash basis at that time.

Senior Advisor
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Re: OptionEye...Dec 20th

I don't think I'll ever live to see that happen. JMO.

Senior Contributor
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Registered: ‎09-27-2011
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Re: OptionEye...Dec 20th

I hope you are right.