Posted 8/1/2020 11:51 (#8408782 - in reply to #8405630) Subject: RE: $5 corn Spread
$3.35 farmer bid at St Louis + $0.85 to get it from St Louis onto a boat in New Orleans + $1.35 to get to China = $5.55 delv to China
65% duty is put on that $5.55 price by the Chinese Govt if they are not granted quota by the Chinese govt = $9.15 per bushel to they farmer raising hogs in China.
The Chinese hog farmer does not see cheap corn.
The Chinese Govt is the one that will control the quota and how they use and subsidize their food & farm market with that import duty that they collect on any bushel of corn imported that does not fall under the quota that the govt keeps for restocking the reserve.