ST Alpha - "they'll have to. but if china--who account for ~1/6 of global production in wheat--end up a net importer, it's going to get...." (Reading a Post)

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In response to "if China will have to import, why wouldn't Egypt just cut out the Chinese middleman and import directly from China's source? -- nm" by Hotkiss

they'll have to. but if china--who account for ~1/6 of global production in wheat--end up a net importer, it's going to get....

Posted by x (aka dmuck) Feb 11 '11, 05:14

one heck of a whole lot more expensive to do so. china is reporting that about 5.2 million hectares of their 14.2 million hectares of wheat have been affected by the worst drought in 60 years. that has huge consequences for the prices of wheat in the global markets--it's not like this sort of supply can instantly be found somewhere else at the same price.

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and china has much, much deeper pockets than Egypt does (or just about anybody else for that matter) -- nm - decline Feb 11, 06:01 3
- yep. tho i do imagine they'll try to mitigate their costs some by releasing stockpile wheat and corn.... - x Feb 11, 06:05 2
  - I know the price of bread we normally buy has gone up around $0.60 or so in the last couple of months (over $3 freakin' bucks a loaf) -- nm - Beaker Feb 11, 06:10 1
    - yep, and with feed stuff like corn doubling in price over the last six months expect that to work its way into... - x Feb 11, 06:16

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they'll have to. but if china--who account for ~1/6 of global production in wheat--end up a net importer, it's going to get....

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