IKN

Take physic, pomp

Chart of the day is…

…soybeans, monthlies since 2004:
 
  • The rise in price of soybeans is from higher demand, which is outstripping the higher supply from South American (Brazil, Argentina, Paraguay, other) expansion
  • The demand comes from China
  • China imports soybeans from South America because it can’t grow enough on its own land
  • China doesn’t have enough water to do that
  • Ergo, China is importing concentrated water more than soybeans, which are just the carrying vessel
  • Soybeans are a proxy to the price of water. 
  • Water’s never going to get cheap again.
  • Neither are soybeans.
  • End

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