Looks like an absolute brutal day coming up on all markets.
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The world could be in a Too Cheap To Buy mode for some time..
It will be interesting to see what value is placed on food.
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China's markets are still heading down, I would have thought with the amount of government involvement in Chinese businesses they would be immune from economic downturns. Or possibly it is Harper's fault, if he had spent money in the right places the economy would be fine lol.
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Knowing China's reputation for "conniving" type dealing, one has to wonder if there is a conspiracy afoot. What if they had foreign reserves and started buying cheap commodities including grains, oilseeds, and crude? They seem to be in a perpetual state of economic warfare with the rest of the world.
It's a strange situation as the West wants to rely heavily on China for trade.
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I mentioned that weeks ago about China using their marketing strategies to lower their cost of buying.
Errol said a lower yuan makes things more expensive for them. Not if they devalue the yuan by 4 percent and everything they buy is reduced by 45 percent.
That's tin foil thinking.
But not funny.
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Yes a lot of selling is happening but more is likely being vaporized in the devaluation process. Poof!
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Dow down 850pts, canola down 13.50, wheats down, beans and corn down, crude down, doesn't look like money is moving to grain/food commodities.
How is AGU-t staying at such lofty levels?
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