Posted 2/8/2019 09:02 (#7305860 - in reply to #7304373) Subject: RE: Demand, obviously you missed the memo.
North Central Illinois
The Chinese told their pork producers to back off their hog ration of 20% soymeal down to 12%. This was back in September so whether they followed through on this or not I cannot say. I would guess they did because I think we all realize that you can finish a hog on less than 20% meal in the ration. If they did that it would amount to a huge percentage of what they import from the US. This came from Reuters. Believe it or don't believe it but if you were the Chinese what would you do?
Between 2016 and 2017 the Chinese invested over $23 billion in Brazil. I believe that was spilt out amongst infrastructure, energy, and other miscellaneous things. The curious thing is they put the brakes on their investment in 2018. I believe their investment for 2018 was right at or just under $2 billion. The thought is this is due in part to some of the political upheaval in Brazil and just taking a breather to see how their previous investment is going to pay off. We should know a lot more in the coming months. I think they have already demonstrated their willingness to invest huge amounts of capital in Brazil if they need to. If they can't come to some sort of amicable agreement with the US they will most likely need to. Again, believe it or don't believe it. Entirely up to you.