2. This deviation is generally high abroad, but not at home. There are two reasons for this.
There is an enterprise in China called COFCO, and there is also an institution called the State Reserve. They have two responsibility, stable prices and protection of farmers' interests. Therefore, we can often see that when the price of an agricultural product is very high, the main force of the air force is often COFCO, even if it loses money. When the price of an agricultural product is very low, the main force of the bulls is often COFCO.
These traditional varieties are in short supply in China, and China's consumption is often in the forefront in the world. So we can see the so-called "China demand" in many reports. As long as China wants them, the price will definitely go up, which is not the point.
To put it simply, the two markets cooperate with each other, so when the domestic market stops following up, these foreign capitals will continue to speculate in foreign markets, in any case for the maximum benefit.