business

Keeping China fed as inflation surges brings risk for commodity prices

15 Comments
By Beiyi SEOW

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But relentless COVID disruptions -- caused by restrictions on the movement of goods and farm workers -- on top of higher fertilizer and fuel costs and issues with access to equipment, threaten the autumn harvest of key crops such as soybean and corn.

The problems about China's outdated and unsustainable approach towards the control of the pandemic obviously affect them first and mostly, but unfortunately in this connected world it ends up affecting everybody else as well.

Seeing how China already began to buy grain at higher prices the rest of the world can also expect the current shortages and increase of prices to become worse and worse.

1 ( +3 / -2 )

Virus,China is one of three in the production of Wheat,I do not eat,food from China

2 ( +2 / -0 )

Saying China buying food can increase the prices is ignoring the real reason for inflation, uncontrolled money printing. Commodities have been the same forever. The only thing that has changed is the value of money. The higher the price, the lower the value of money.

40% of all USD ever in existence has been printed in the last 2 years. Japan has the highest debt to GDP in the world.

What has real value? A crop you put hard work into producing, a mine that took billions and a decade to construct before you can even see a profit or fiat currencies that are produced by pushing a keyboard?

3 ( +4 / -1 )

Virus,China is one of three in the production of Wheat,I do not eat,food from China

But if China wants your food and can pay more for it than what you can, it will mean you are not going to eat any food no matter from where it comes.

-2 ( +0 / -2 )

Well CCP... if you'd been paying a bit more attention to the consequences of your strategic "ally" up North of slavic descent starting with RU and their invasion of a good agricultural supplier starting with Uk... you'd probably have a bit less costs on getting food.

-2 ( +0 / -2 )

Honest

So commodity prices rising in China are also Putin's fault? Anything else?

2 ( +2 / -0 )

China and Russia alone could form a closed ecosystem.

Russia produces food, China has factories.

3 ( +3 / -0 )

This is why self-sufficiency is so important

2 ( +2 / -0 )

Russia could sell the stolen crops of Ukraine along with it own harvest to China.

.

China could offer to buy it at a reduced cost, as it is only one of a few that still does not have restrictions of trade against Russia.

0 ( +0 / -0 )

But if China wants your food and can pay more for it than what you can, it will mean you are not going to eat any food no matter from where it comes.

If there is food "no matter from where it comes", then it means he is going to eat.

-2 ( +0 / -2 )

China bought many farms in the US, they will simply grow for their country and send back to China. Thanks to the sold out US politicians who allowed this to happen.

1 ( +1 / -0 )

Virus,China is one of three in the production of Wheat,I do not eat,food from China

China is actually number 2 in global wheat production behind the EU. Nonetheless, China cannot produce enough food to supply their needs and imports vast amounts of wheat, soy and other food commodities from abroad.

1 ( +1 / -0 )

China bought many farms in the US, they will simply grow for their country and send back to China. Thanks to the sold out US politicians who allowed this to happen.

Only 2% of US agricultural acreage is foreign owned. The largest amount is forest land for timber operations by those dastardly Canadians. Saudi and UAE are next buying land to produce fodder for cattle. Right behind them are those moral enemy states Italy and New Zealand. The only major Chinese holding was the purchase of Smithfield Foods by Shuanghui, re-named WH Group.

By comparison 61% of US farmland is owner operated, another 8% worked by tenants of farmers who work the land they own, 21% is owned by non-farming individuals and partnerships who rent the land and 10% is owned by institutional investors.

Just me but I would worry more about the land owned by the institutional investors being taken out of farming and developed into yet more mall sprawl and over priced cracker box subdivisions.

1 ( +1 / -0 )

If there is food "no matter from where it comes", then it means he is going to eat.

Unless that food comes in infinite amounts it does not, because as long as someone else can offer more money for it it is simply much more likely to be sold there. The only source that can guarantee the person gets that food is one that does not have an economic profit as a priority, which means his own country.

0 ( +0 / -0 )

well, plenty of stolen grain from Ukrain will be heading from the fellow imperialist. just keen to see how long the cozy marriage is going to last

0 ( +0 / -0 )

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