China Weather and Impacts
Hot / Humid and the Price of Feed The Chinese farmers are aware of the US drought conditions and had lots of questions on how bad it might be and where it drought is occurring in the United States. Corn prices in China (Shandong province, China) are about $10.50 and soybean meal (SBM) prices are around $540/ton. Pigs are at break-even levels for the year or even less for some. Excellent producers are now making less than $15/head. It is possible that corn in China will go to $15/bushel this next year and SBM to $600/ton.
Much of the poultry industry is failing and falling fast. Most of the feed companies are not making money this year at best and losing a load at worst! The weather has been mild in their eyes, but I find that heat and humidity are pretty much like the worst in the Midwest. Corn looks real good and everything is green! They use irrigation and can do that with individual water hoses that are dragged from row to row by the owners. This is best described by a clear plastic tube that looks to be about 2 ½ inches and pretty light plastic (we ran over one on the driveway and it started a nice water shooting display) [Editor note: text Jim Lease, JBS United].