Posted 8/1/2020 08:10 (#8408348 - in reply to #8408308) Subject: RE: A bushel of corn is the same everywhere
Ok sorry I gotta vent a little. And maybe this isn't quite what you're talking about so sorry if I'm missing it.
I'm getting more confused every day on this 'china is screwing us' thing.
Who is pocketing $2? I don't feel like I'm doing something unethical when I buy the cheapo set of wrenches from Taiwan versus the more expensive SK set.
US growers are in a situation where we have way too much inventory on hand and way too much coming at us this fall. China has been doing the things that China does but they are finally booking huge amounts of our grain. Now it's like we're mad at China for booking their huge needs just because it happens to be the right time for them to do so.
Like it or not, every single one of us tries to do exactly the same thing. When diesel fuel gets low, we try to get some booked. When propane drops for those of us that dry corn, we try and get some booked. When fertilizer drops, we're much more content writing that check than when it's crazy high.
So if the cost of US corn is $2 cheaper than their domestic supply, AND they need more corn than they produce, what on earth would we expect them to do??? If I was them, I would shore up my needs when it benefits me to do so. Why would I wait for prices to rise??
It's funny when the weather is against us in the spring or fall, and people on here worry about getting the fieldwork done, it never fails some come back with "NEVER BET AGAINST THE AMERICAN FARMER!!" as if we're some giant army of Supermen, able to overcome any obstacle and leap over tall buildings in a single bound. But when China buys a bunch of corn while prices are lower than we want, suddenly we're getting screwed it's not fair....????