Posted 7/9/2018 09:27 (#6858712 - in reply to #6858692) Subject: RE: Isn't it the other way?
Fontanelle, IA
If you have a low accuracy of data confidence - you have more "risk"
If you want to avoid "risk" year over year or lessen risk - you carry more inventory. I believe that Ken Morrison said that China has 2 types of govt reserves - a strategic reserve type that no one knows how many bushels are in it and a floating reserve that they are drawing down? Not sure.
the Chinese ethanol plants (I was told) were a 2 fold solution to the problem of 1. City air quality/oxygenate (10% ethanol in gas mandate) and 2. out of condition grain stocks/ not suitable for feed/food