Armstrong Economics Blog/Agriculture
Re-Posted Jul 30, 2020 by Martin Armstrong
COMMENT: Hope all is well
We as farmers are paying a price as our pm is bad-mouthing the Chinese. We, Australian farmers, have had a rough deal over the last 30 years because we lost $12 /ton on the Iraq debt, the UN destroyed our AUST WHEAT BOARD SHARE PRICE OVER WHAT SALES TO SADDAM HUSSEIN so the SHARE went FROM $6.5 TO $1 PER SHARE and then it was taken over by a Canadian company for $1.5/share.
REPLY: This coronavirus has been a political coup, and we are heading into a confusing time for markets as well as politics. We have the CEO of Facebook, Mark Zuckerberg, who is now calling for the breakup of the US government and boldly saying that no one government can stand up against Facebook. This political turmoil has reached an absolute toxic level, and the impact of that is the destabilization of confidence in the future. That undermines the markets going forward.
As it now stands, we should see a retest of support in wheat produce going into the fourth quarter of 2020. We still see 2020 as a Directional Change, but the market will routinely create the false move to get everyone on the wrong side in order to create the necessary powerful slingshot. So just understand that it will get worse BEFORE it turns around. This virus has undercut the supply chain, and the rising tensions with China will only add to the confusion. We seem to have the worst possible politicians in key places at the exact wrong time.