Grain Market Comments: China Demand Still Has Center Stage

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Edgar Hicks

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Market Comments covers weekly developments from Wed. to Tues.

Market Comments: 7/13/11

China Demand Still Has Center Stage

It has been three weeks since I have returned from China, and I continue to think about the Malthus theory about the relationship between food production and population. After more than 200 years, it registers with me that his hypothesis will come to fruition. Day to day, it feels like I should not have taken the trip!

No matter how I look at daily market recaps, there seems to always be a line attributed to China. China holds over a trillion dollars of US debt issues. Markets do not seem to believe the President and Congress will fail to come to terms (by month-end) with this debt ceiling crisis. Good risk management should not push a grain merchant into crisis management!

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