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steve5

04/18/11 11:02 PM

#3510 RE: rickkei #3509

Good article. That's why China, several moves ahead the crowd, is trying to ensure supply of grains for oil since last year from countries like Brazil, to be processed in Canada, and I guess now, in USA. That is one of the reasons I'm confident, the deal between Chongqing and CPOW most go through. Chinese are pushing hard in all commodities fronts, they see what's coming, as some of us in the US and Canada. Most investments outside commodities will be crashing down including the EURO and Dollar (or even worthless) probably as soon as before 2012. IMHO.

China has been importing also massive amounts of gold, despite being the number one producer of gold. I see Mr. Shenher's mentality able to match Chinese moves. I see that for his moves so far and his personality configuration, I see him as one of the awaken people, aware of the games most people ignore. I see that also in his twitter posts (he posted today again). Here are his two last posts:

Gold-Shortage Threat Drives Texas Schools Hoarding 664,000 Ounces at HSBC - Bloomberg

Future Shock: China’s Remarkable $3 Trillion in Reserves; What Will China Do With Them? | It's News

He also is fan of Ron Paul, that alone should give us a clue about where he stands on. I see by the current pps, most people is not able to see the big picture, since most people get stuck and lost analyzing details that are meaningless. And that's why most people is caught with their pants down when a crisis hits home, instead of hearing the rumble outside they are focused and lost on the squeaking of the hinges of the batthroom door.
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agribusiness72

04/19/11 2:08 AM

#3511 RE: rickkei #3509

Great article, but allow me to add a few concerns with this overall market and food shortage, that CPOW's CEO needs to consider and act upon.

First, Fuel Producers
That anticipated demand for soybeans by fuel producers may not be met by U.S. farmers, who told the government last month they intend to cut acres planted with the oilseed by 1 percent this year, the USDA said March 31. Chinese growers may plant 11 percent fewer acres, seeking greater profit from cotton and corn, the agriculture ministry said in a report March 16. Prices for both crops more than doubled in the past year." and "While higher prices may be hurting food companies and consumers, they’re bolstering income for growers."


The ones that need the oil the most may plant less to make additional profits for the growers / agriculture industry. Though they are talking corn, cotton, and soy, it will cross over to other seed crops. Thus raising the prices of the raw materials that companies like CPOW will have to pay, though they can pass on some costs to the consumer, for the most part the profit margin is cut. Also less product equals greater competition for the "oil / Fuel" producers. In other words, Shenher needs a commodities expert on his staff to be able to forecast and acquire goods on the futures market to maximize profitability and stabilization of raw material and manufacturing costs. I look forward to seeing how he handles this.

Secondly, and out of everyones control is the weather as the article states we cannot afford a hiccup. So again, Mr Shenher needs to stock pile as much as possible, if possible, and as soon as possible to avoid production delays in Montana, and possibly Alabama (if still on the table). Problem currently is funding, I know the 30 million is possibly available after the SEC approval but so many restrictions and limitations that it may be very difficult for the leadership to recover or sustain production from any natural disaster. I'm hoping for greater transparency in the future that will alleviate the markets concern, and thus gaining CPOW the respect it so desperately needs. I look forward to your thoughts.

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