Posted 7/30/2020 22:00 (#8406130 - in reply to #8405868) Subject: RE: China doesn’t have to do s&$t and won’t
mfro629 - 7/30/2020 20:45
JNL - 7/30/2020 20:40
+1 I wonder what the OP's sources estimate the cost for moving grain from the Chinese ports to the interior.... there must be a reason they didn't start buying months ago well after phase 1 was in effect,,,
I didn’t quote a cost to move from Chinese port to interior... I quoted price to ship from central Illinois to Chinese port... after that it’s not my problem or your problem it’s a China problem... we pay our shipping to the gulf via Basis they should to... China is selling stocks they already have for 8$
And buying our grain for 6$ ... that’s not exactly free market principles at work... if corn is worth 8$ it should be worth 8$ for everyone in China plus shipping
I don't follow your logic. If the end user in inland China is paying $8, then that price has to include shipping from the ports. So the value of that corn at the ports is $8 minus shipping. And $2/bushel just might be the shipping and handling costs to get it off the boats and transported to the end user.
As others have said, it's obvious that the current price differential does allow it to work, after all, they're buying hand over fist right now.
But no where does that mean that there's gobs of profit in it. It just means that there's enough profit to make it work.