The Contrary Investing Report
Investing and Trading News, with a Contrarian, Sarcastic Twist!


Why China May Soon Halt Commodity Purchases

by Brett on June 16, 2009

Apparently, most of China’s recent purchases on the commodity markets have been to build up stockpiles, rather than satisfy actual demand – according to The Daily Crux.

That means the huge Chinese buying is unlikely to continue, and that in turn means commodity prices may be unable to sustain their recent advance.

As for the stockpiling, at least 90 freighters stuffed with iron ore that are floating at China’s ports will have to wait as much as two weeks to unload their cargo because port storage facilities are full…


If this is the case…we sure could be in for a violent pullback in the near term.
Personally, I sold all of my soybean positions today – I was too scared to stay long, and I’m also too frightened to go short. So for now I’ll bide time in cash – US dollars of all things!


Our Partners





Further Reading:

We publish a free daily newsletter, The Contrary Investing Report, which highlights trading and investing stories that are key to your financial success and survival. Please subscribe here.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Previous post:

Next post: