The game of cat and mouse continued last night. We are still trying to determine who is the cat and who is the mouse but it appears last night’s masquerade was won by a cat dressed in red, white and blue spandex, with small paws.
Talk that China was no longer pursuing the anti dumping action on US sorghum because it was hurting Chinese consumers due to the higher cost of imports was interesting.
No doubt the number of sorghum boats floating around Asia were happy to hear the news. The Aussie drought must have been very untimely for China. Kind of makes you realise what these big importers really mean when they say they are looking for continuity of supply though doesn’t it.
The flip side if you read into it is that the import of expensive sorghum was hurting. This raises the question, if importing a small crop like sorghum was causing grief than what does China think putting tariffs of something like soybeans is going to feel like, that market is worth over ten times the values of sorghum imports. Unless S.America have a massive expansion in bean production, unlikely right now, than maybe US soybean tariffs are just another game of cat and mouse in the off season. As if we needed confirmation of this.
Wheat futures were the shining light in last night’s US futures markets. The US wires indicate the punters are actually looking at global weather concerns across Australia, Russia, Brazil and their own back yard. The fact the market was oversold was coincidental.