Has anybody stopped to consider why china is buying so much grain from the USA Obviously china wants grain. That much is obvious and us folks in NA are getting giddy over our new found market
But when somebody acts in an opposite manner than usual I often ask why. Why did that person suddenly become my best friend when for so long he/she did not even give me the time of day. What is the reason??
So china is buying our grain in amounts not seen for a long time
Why??
1:Biden vs Trump
2: There is no grain any other place in the world except the USA. That much is obvious but has anybody considered the amount china has bought from all sources compared to this yr??. Yes there is a world shortage and china wants there grain so they will buy.. Could be a legit reason to buy
3: You all know I think china had crop failure and now need to buy to fill the void from domestic crop failure. Could be a legit reason to buy
4: China has recovered from hog disease and needs grain to feed the hogs. A legit reason to buy
5: China is stock piling grain for future use, should tensions increase with china and the USA military. China is reported to have run a drill in which they practised bombing the USA air carrier in the south seas
China has also over flown Taiwan air space with bombers, not once but at least twice
Now the question I ask
Why is china buying so much grain from a potential enemy [USA] i with hostilities n the south seas or Taiwan
Does china do practice drills to bomb the USA carrier just for fun??? Will china stop this sabre rattling or will china slowly ramp up hostilities
Are we so giddy over these sales and prices that we forget china could be our enemy some time
Does anybody remember selling scrap steel to japan shortly before Pearl Harbour and that steel came back at us in bombs and other devices. Now there was also the consideration that the USA stopped selling oil to Japan, that was possibly a trigger but most of us think Japan would have started hostilities no matter what. Just a matter of time
So: Will China start hostilities, just a matter of time
Do we sell the grain and take the money?/ I doubt anybody wants another Jimmy Carter episode
In which case we let events play out and decide what to do if china does initiate active hostilities
IMHO. I don't think there is much you or I can do, other than hope somebody has a plan, which I am sure they do . In the mean time take the money and run.
And be ready for the chinese to stop buying our grain
Thanks Wayne!
Good topic that I answered most of the question with on the trading forum here: