Not sure if you know this but soybeans aren't grown in factories.
Yep, I pointed that out. Without a factory, how can you keep up with China's order right now, today? Not next year after you burned down the rain forest.
Most of the US soy is rotting in warehouses
We had been exporting 1/4 of our crop to China. While that is significant, how can most of the crop be rotting in warehouses? I mean a 1/4 is alot, but most?
Grain does not keep indefinitely, but is not rotting like a warehouse full of oranges.
If there is so much surplus, why is the price the same as it was in 2016 when somebody else was president? It ought to be at $3/bu by your measure.
The welfare as you call it doesn't prop up the market price. The farmer subsidy is in addition to the market price.
^ I kept looking at that chart and seeing those huge bumps in Barack's two terms. They coincide with QE 1,2, and my favorite 3. It's a commodity bought in US dollars around the world. If you print more money, US commodities cost more.
Trump just needs a QE4.
Brazil isn't reselling US soy to China.
How is Brazil filling the order. They can't pull 32 million metric tons out it's ass.
At the same time, Brazil and Argentina, another major soybean grower, have snapped up some of the cheap US supplies for their domestic markets, according to Grant Kimberley from the Iowa Soybean Association.
“There have been purchases from Brazil and Argentina to back fill their own domestic industries,” he said.
It’s not just Brazil that’s buying the surplus American soybeans, however; US sellers have also reported unusually high sales in non-traditional markets across Europe, the Middle East and Southeast Asia.
'In the end, the beans are going to move someplace, it’s just question of at what price,” he said. “It’s like a big game of musical chairs, but it’s not something you would draw up in an economics class as a model of efficiency, that’s for sure.”