Title: China Food Crisis? Rising Domestic Prices And Large Import Purchases Send A Signal
Headings: China Food Crisis? Rising Domestic Prices And Large Import Purchases Send A Signal
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Content: The USDA’s Foreign Agricultural Service points to an unusually early and intense infestation of Fall Army Worm in June as the likely cause of China’s current corn angst. Rising Demand
It is worth noting that year-to-date China is on pace to make its highest rate of US soybean purchases since 2014, and China’s June imports of soybeans from Brazil were up a staggering 91% from the year prior. China is aggressively buying soybeans and soybean products to feed its expanding swine herd, the world’s largest. In fact, the USDA projects that China will import from all sources a record total amount of soybeans next year. Overall, the past few months have seen China increase its imports of pork, soybeans, soymeal, wheat, corn, sorghum and prepared/frozen foods from the United States and elsewhere. China can’t feed itself; it needs the world’s help, especially if its domestic production and inventories are compromised. It’s too early to gauge the ultimate severity of China's total food woes, and it’s highly unlikely that the ripple effects of China's food issues will cascade through the global food chain, but right now Chinese leadership has food security as a top concern. Sal Gilbertie
I am a commodities focused entrepreneur with over three decades of experience in physical and derivative energy and agricultural commodity markets. Opinions expressed are
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I am a commodities focused entrepreneur with over three decades of experience in physical and derivative energy and agricultural commodity markets.