Tuesday, April 10, 2018

Fungible?

Are Soybean Tariffs Irrelevant?
No, not really, but close, like oil

Don't need to get fancy with the math. Any restriction causes agents to take a longer path. The result is an arbitrage moment which causes cycles.   But soybeans, wheat and oil tend to be more fungible mainly because these are bulk commodities with floating platforms around the world on duty.

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