MONDAY, MARCH 28, 2022 - SOYBEANS!! (huh?)

 MONDAY, MARCH 28, 2022 - SOYBEANS!! (huh?)

We do live in a global economic environment.

Let’s follow soybeans.

The world’s #1 producer of soybeans is Brazil.  Their #1 buyer is China.

First this:

Russia and Ukraine are among the biggest exporters of major grains like wheat and corn, and also vegetable oils used in cooking. As shipments from the two countries ground to a virtual standstill, prices of many agricultural commodities have soared. China is a major buyer of corn and barley from Ukraine, as well as sunflower oil from both Ukraine and Russia.

Now, soybeans need fertilizer:

“Brazil imports 95% of its nitrogen fertilizers, and Russia is the leading supplier, accounting for 21% of the amount imported.

Then this:

“China's total imports of soybeans in March rose 82% to 7.77 million tons. Chinese crushers bring in soybeans to crush into soy meal to feed livestock and for cooking oil. They had previously ramped up buying of soybeans amid expectations of healthy demand from the country's fast-recovering hog herd.

So, with the Russia-Ukraine war limiting Russia’s exporting of nitrogen fertilizers, probably means fewer soybeans produced in Brazil.  Fewer soybeans in Brazil mean less soy meal for Chinese livestock (and cooking oil). 

So …

Chinese buyers recently booked about 20 cargoes of American soybeans and about 10 shipments of corn, according to traders who asked not to be identified as they aren’t authorized to speak publicly. The buying spree reflects robust demand in the top importer as worries over supplies grow following Russia’s invasion of Ukraine and weaker-than-expected supply from Brazil, the world’s biggest soybean producer.

So, the United States soybeans might be in more demand due to the Russian-Ukraine war.  That might be good or not - depending on your viewpoint.  More soybean exports will help the American farm economy (fantastic).  But that might mean less use of soybeans in our country, so our livestock prices may (gulp) continue to go up - and the prices of American meats will increase.  

Okay - just one example of global economics.

Let’s look at a related topic:

WAR

“NATO estimates that up to 40,000 Russian troops have been killed, injured, captured, or gone missing during the first month of the Kremlin’s war, an alliance official confirmed to NBC News.

Of those, between 7,000 and 15,000 Russian troops have died, according to the official, who spoke on the condition of anonymity.

“From 4 a.m. on 24 February 2022, when the Russian Federation’s armed attack against Ukraine started, to 24:00 midnight on 22 March 2022 (local time), the Office of the UN High Commissioner for Human Rights (OHCHR) recorded 2,571 civilian casualties in the country: 977 killed and 1,594 injured.

“The most recent figure for Ukraine's military losses came from Zelensky on March 12, when he said that about 1,300 Ukrainian servicemen had been killed in action. “

“The invasion of Ukraine has placed Russia on the verge of bankruptcy. Interest rates have doubled, the stock market has closed, and the ruble has fallen to its lowest level ever.

The military costs of war have been exacerbated by an unprecedented level of international sanctions, sustained by a large coalition of countries. Russian citizens, now unable to spend at IKEA, McDonald’s, or Starbucks, are not allowed to convert any of the money they do have into foreign currency.

Generous estimates suggest the Russian economy could shrink by 7% next year, instead of the 2% growth that was forecast before the invasion. Others say the drop could be as much as 15%.

War takes money.  I have no idea how much it takes to build a tank, but I’m guessing it is plenty - plus guns, ammunition, soldier pay, airplanes, infrastructure (food, housing).  My guess is that both Russia and Ukraine are going to have a tough time for years paying off war debt.  (And, yes, the United States and NATO countries are also spending money to help out the Ukrainians!

*****

“And what does God expect of me?  To love justice, show mercy, and walk humbly with God!!”

LOVE WINS!!!

Karen