Charlie;
I did not know the Yaun was tied to the US dollar, did you?
This was on the Grand Forks site;
http://www.grandforks.com/mld/agweek/
under Markets
"Posted on Mon, Jun. 09, 2003
Keep an eye on currency's movement
Once again, the dollar endured a down week. Timing percentage is extremely low so I want to keep a close eye on this market. The 1998 spike low of 9057 (cash index) is where the index is trying to penetrate. Timing is too low or tight for me to be much more negative. It is very crucial to be currency aware. As the U.S. dollar declines, what does that mean for the Chinese? First, the Chinese Yuan is tied to the U.S. dollar. This creates them to pay up for soybeans out of South America. That is why the Chinese talk so negatively to try and break the market. Traders are starting to become smarter. The old adage "Your actions speak louder than words." However, besides that, it helps China become more economically prosperous as the value of their goods becomes cheaper because of the currency decline in sync with the dollar and exports excel.
Over the past week, the Chinese government has delayed releasing import licenses for soybeans. Therefore, 500,000 to 700,000 metric tons of South American soybeans are waiting to be offloaded at Chinese ports. This is a ploy to drive prices lower on world markets. If they were going to refuse imports, why didn't the Dahlien Futures Exchange see the soybeans move limit up?"
The article continues on into Cattle markets, and the US Canadian relationship, have a look...
Seems to look like with a weak US Dollar, the likely bottom for US Beans is $6.00/bu according to this article.
Unless the Canadian Dollar is headed for $.80 US, which is possible when SARS and the Mad Cow scare is settled down, this should be positive for New Crop Canola, shouldn't it?
I did not know the Yaun was tied to the US dollar, did you?
This was on the Grand Forks site;
http://www.grandforks.com/mld/agweek/
under Markets
"Posted on Mon, Jun. 09, 2003
Keep an eye on currency's movement
Once again, the dollar endured a down week. Timing percentage is extremely low so I want to keep a close eye on this market. The 1998 spike low of 9057 (cash index) is where the index is trying to penetrate. Timing is too low or tight for me to be much more negative. It is very crucial to be currency aware. As the U.S. dollar declines, what does that mean for the Chinese? First, the Chinese Yuan is tied to the U.S. dollar. This creates them to pay up for soybeans out of South America. That is why the Chinese talk so negatively to try and break the market. Traders are starting to become smarter. The old adage "Your actions speak louder than words." However, besides that, it helps China become more economically prosperous as the value of their goods becomes cheaper because of the currency decline in sync with the dollar and exports excel.
Over the past week, the Chinese government has delayed releasing import licenses for soybeans. Therefore, 500,000 to 700,000 metric tons of South American soybeans are waiting to be offloaded at Chinese ports. This is a ploy to drive prices lower on world markets. If they were going to refuse imports, why didn't the Dahlien Futures Exchange see the soybeans move limit up?"
The article continues on into Cattle markets, and the US Canadian relationship, have a look...
Seems to look like with a weak US Dollar, the likely bottom for US Beans is $6.00/bu according to this article.
Unless the Canadian Dollar is headed for $.80 US, which is possible when SARS and the Mad Cow scare is settled down, this should be positive for New Crop Canola, shouldn't it?
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