What's this have to do with the price of beans?
President Trump spilled the beans: China is buying soybeans again.
Just before the 10 minute mark in this conversation between President Trump and the Vice Premier of China, something pretty astounding is mentioned.
Vice Premier: "We will buy... five billion, five million, five million... five million tons of soybeans... per day."
Trump: "That's going to make our farmers very happy, that's a lot of soybeans."
Is that really a lot of soybeans?
For all I know, that might be peanuts compared to other month's exports to China, so I did a little homework.
Turns out, yes. That's a lot of soybeans. In the past two years, our best month in exporting soybeans to China was October 2017 exporting about 7.1 million metric tons that month. That's 229,000 metric tons per day.
So yes, 155,000,000 metric tons per month is a lot of soybeans.
155,000,000 tons per month will change the scale of this chart.
How much does a Metric Ton of Soybeans cost?
I had to look this up. Math.
1 Metric Ton of soybeans is currently $380.53
X 1,000,000 Metric Tons = $380,530,000.00
$380,530,000.00 X 5 = $1,902,650,000.00
That works out to about to just under $2 Billion per day in soybean sales.
Two Billion Dollars Per Day Added to Our Economy.
An army runs on it's stomach and nations do not quickly bite the hand that feeds them. If this deal goes through, we are going to have an excellent, long-term customer - and a strategic advantage on the world stage.
Bless the Most High!