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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1252)	11/6/2003 7:25:22 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's huge appetite for U.S. crops buoys prices Reuters, 11.06.03, 3:37 PM ET By K.T. Arasu CHICAGO (Reuters) - China's voracious buying of U.S. crops like soybeans and cotton has buoyed prices, with more demand likely as Beijing struggles to dilute its growing trade surplus with the United States, analysts said on Thursday. Last week alone, the world's most populous nation bought 1.5 million metric tons of U.S. soybeans worth some $500 million, including the cost to ship them to China, whose economy has been galloping at a frenetic pace in recent years. China's demand has pushed U.S. soybean prices to six-year highs even in the middle of harvest, while cotton prices last week hit eight-year highs as China's buying of U.S. cotton swamped the market. Both presented a gift to U.S. farmers. U.S. corn and wheat farmers are now hoping for Beijing to dip its toe in their markets, too. Prices of both grains at the Chicago Board of Trade have gained in recent weeks on rumors that China may be switching its policy to holding or importing stocks after several years of actively exporting them. "China's wheat stocks are projected to drop from 92 million tonnes in 2000/01 to 42 million in 2003/04," said Harry Baumes, managing director of Global Insight Inc., a research firm. forbes.com