East Central South Dakota | I believe world price structure is somewhat dependent upon world economic and social stability. Countries that have the dirt, but not the economic and social stability never become long term players in the world export market——see Africa. OPEC ( Organization of Petroleum Exporting Countries ) has at times been somewhat successful of curbing supplies to disrupt the price structure of oil, even with the somewhat numerous countries that export oil. If one was to establish OGEC ( Organization of the Grain Exporting Countries ) you would really only need two people/countries in the whole world to cooperate, for all practical purposes. When Brazil elected President Jair Bolsonaro and we had already elected President Trump, the one world elitists attacked them mercilessly especially when they met——what were the elitists so afraid of ? Maybe they studied the attached graphs. Both Presidents have been known to make “unconventional” decisions and both were labeled fascists. If these two Presidents ever did get together and formed OGEC they could have basically controlled the exportable supply of grain—-just two guys sitting in a room. Both countries have monetary deficients and the decision could be made we are using grain to buy down the deficient. $100/barrel crude was the biggest transfer of wealth the world has ever witnessed—-wealth transferred to not so friendly countries. I am not advocating the concept of OGEC, this post is simply an exercise to demonstrate the world is a much more fragile place then we would like to think. Two countries control 81.7 percent of the worlds soybeans export supplies and 50 percent of corn. Supply control action would encourage production in other countries ( not to mention the possibility of world war ), but developing countries simply don’t have export facilities or the economic/social stability for grain export. It would take decades to replace the supplies of Brazil and the USA. We have a lot to be thankful for this year and economic/social stability is one of them, even as the pandemic tests our resolve at civility and social discipline.
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Fragility of world export supply.....
