Highlights
Fears that China’s economy will falter and substantially reduce demand for imports of everything has been a consistent bearish theme since 2020 and the intensity increased in 2024. The real estate developers’ crushing debt has been milked for all its worth by everyone who wants grain prices to go down.
One of the two biggest developers, Evergrande, filed bankruptcy in 2023 in the USA and a Hong Kong court ordered Evergrande assets to be liquidated 6 months ago. The other has faded from the news. Apparently, it has managed to secure a financial lifeline. None-the-less, the potential demise of China’s economy continues to be a burden on commodity markets.
On Saturday, China reported industrial profits grew at a 3.6% clip in June. In May, industrial profits gained 0.7%. The first half 2024 earnings were up 3.5% according to the National Bureau of Statistics (NBS).
NBS statistician Wei Ning said, “Relatively rapid industrial production growth, coupled with a significant easing of input prices since the second quarter, have promoted a stable recovery of corporate revenue.”