Thursday, December 20, 2007

Jim Rogers Was Right About Agricultural Commodities: No More Wheat From China

The Chinese government has moved to discourage grain exportation. Encouraged by yesterday’s all-time high in wheat and 34-year high soy prices, officials announced yesterday that China will nix its 13% tax rebate on grain exports, including rice, soy, corn and wheat.
Food prices in China are up over 18% this year, according to the Times Online, and with 1.3 billion mouths to feed, China now seems less focused on selling won ton chips and soy sauce to gaijin.
“The farming situation in China is getting out of control, China has five times the population of the United States, but less than half the farmable land.”
What’s more, each year, soil erosion causes China to lose some 61,000 square kilometers of land -- a plot about the size of West Virginia. If you’re betting on continued agricultural support from the Red Nation… think again.

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