Wednesday, February 15, 2012

With the Next Chinese President on His Way to Iowa: "Rumors Swirl of a Big U.S. Corn Sale to China"

The future President's schedule pretty much tells you what China thinks is important:
Chinese Vice President Xi Jinping arrived in the United States on Monday for a high-profile visit where he'll be honored as if he were the president of China -- the post he's expected to take next year. Here's his schedule:
Tuesday: Xi will meet with Vice President Joe Biden, and then Cabinet officials before spending time with President Obama. He'll have lunch with Secretary of State Hillary Rodham Clinton, then visit Defense Secretary Leon Panetta, wrapping up the day at the U.S. Chamber of Commerce.
Wednesday-Thursday: Xi travels to Iowa, which he visited in 1985 as a low-level government functionary and stayed with a family in the town of Muscatine. He'll have a reunion in Muscatine and spend time with Iowa Republican Gov. Terry Branstad, who was also governor back then.
Friday: Xi will spend the day in Los Angeles, where he'll meet again with Biden and visit schoolchildren learning Chinese.
A day-and-a-half in Washington to hear: "About that Trillion-three, we're good for it, really", then off to Iowa for two days then on to Cali to get the scoop on the Port of Long Beach.

Regarding the headline story, I don't have much respect for Gartman when he talks equities (check the record) but he shows what modelers call "Skill" in commodities.

From MarketBeat:
There’s some buzz in the grains market. The impending visit of China’s heir apparent Xi Jinping, along with a huge entourage of agricultural executives, in Iowa, a major U.S. farm state, has unleashed some traders’ imagination.

Dennis Gartman, author of The Gartman Letter, noted this morning that: “As for grains, with Mr. Xi in country there are and there will be rumors and rumors of rumors of large sales of U.S. corn to the Chinese.”...MORE