| Buckwheat - 2/14/2019 14:21
FYI. I am a Trump supporter,,,,,however.....I read with much dismay about Chinese Soybean purchase cancellations.....as well as the continuously enlarging spiraling escalating trade difference in favor of China,,,,even in the face of tariffs opposed by the US......so what the he// is going on?
First,,,on the purchase contract cancellations,,,,has this even been addressed in ongoing trade negotiations? Where I come from, a deal is a deal.....why is this allowed to continue?
Secondly, evidently...the US consumer is continuing to purchase crap from china at an increasing rate,,in spite of Tarrifs applied ....Tarriffs are a tax on consumers but so far the US consumer is either A acting irrationally,,or B,,,has China managed to somehow lower the underlying price of its exported products,,thus keeping the net price after tariff the same? I don’t know,,rhetorical question.
It would appear to this Trump Supporter ...from an Ag perspective,,,all that has been accomplished is an overseas market for beans has been severely damaged,,,inputs for Ag have actually increased...US consumers are buying more not less chinese crap. In Ag,,,ALL markets are interrelated,,,,,,,so when guys in the Dakotas and Minnesota decide to throttle back on beans this spring,,,,as it is becoming very obvious the soybean market will take a a long time to correct,,,,I imagine HRS will be seeded in it’s place......Thus downward price pressure on HRS.....makes one wonder just how much foresight or thought has been expended by our negotiating teams? Again, I am all for a hardline on china,,,,but have they outsmarted us...AGAIN?......
Cancellations "current" on 1/3/19, so month old news. When the government was closed is was "Oh the exports are being done in the dark, only the big traders know what they're doing and that's unfair in the market." Now the government is open and it's "Oh look at what they were doing a month ago no one knew that and now the market is tanking." So which is it? Did no one know when they cancelled back in December? Or was the market impacted then by the liquidating of hedges in the market by the original sellers of the contracts? Today is ugly but it's a blip on the radar IMO. Maybe fake some speculators out, get them to put on some weak shorts. Now some time in the next week or two they get blown out IMO.
Technically I'm watching right around 9.00 on the March chart. If we print an 8 on the March and things may get blown out. I don't expect it, but I'm absolutely prepared. As a risk manager for your farm, are you? |
Did Trump get Trumped by the Chinks?
