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Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  China & soybeans Date:  9/27/2018  8:06 AM
Author:  DrBob2 Number:  544859 of 572986
Virtually all the world’s soybeans–a crop used for food products but mostly as the basis of feed for livestock like pigs–come from the U.S., Brazil, and Argentina. China used to grow its own soybeans–the soybean, in fact, originated in eastern China....

Sixty percent of all soybeans grown worldwide are now exported to China, with 5% to 8% growth per year....The steadily growing demand is largely driven by expanding hog and poultry operations that use soymeal for feed....

In northern China, where soybeans were once traditionally grown, water tables are dropping at a rate of up to 10 feet a year. Northern China (and parts of the west) is running out of water....To produce just one ton of soybeans, it takes 1,500 tons of water. China’s ambitious plans to divert rivers from the south to irrigate the north are in trouble now for ecological and political reasons.

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