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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
Why You Need To Be Concerned About China's Missing Commodities - In case you haven't heard the Qingdao CCFD ponzi investigation is in full-swing and starting to make many in the commodity investment world very nervous. In case that wasn't enough, Chinese commodities trading firm CITIC is now admitting that over half of its 220,000 tons of aluminum have pulled a "David Copperfield" and vanished. On top of that there is talk that other commodities at the Qingdao port could be missing as well. The fear is as the investigation into the "missing" commodities grow and deepen,? traders are going to realize a much larger portion of the so called Chinese "demand" has been fictitious and used exclusively to fuel several elaborate banking schemes. Investigators are trying to determine if various groups have been using the same batches of copper and aluminum stored at the port as collateral to secure multiple loans. The other fear, which is already starting to materialize, is that increased uncertainty and scrutiny of shipments may severely hurt or drastically slow down imports of various commodities. We are already seeing international traders holding back and delaying cotton and copper shipments as they wait for more clear Chinese policies and some type of ruling on the current investigations. We are hearing customs officials are taking anywhere from 15 to 20 days to up to a month to clear shipments of copper cathodes. Earlier, it used to take seven to 10 days. The question being asked is just how much of the Chinese demand was REAL and how much was fabricated to provide collateral in a very smoked filled shadow banking system? CLICK HERE to get all of my grain comments......
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