Could China’s Deal With Cuba Depress Commodity Prices?
Irwin Greenstein (November 20th, 2008) Writes:
China’s President Hu Jintao just concluded on a victorious trip Havana on Tuesday - expanding a trade pact that could divert commodities from open spot markets.
It’s no secret that China has largely been responsible for the commodity run-up of the past few years. Now the question remains if the latest deal with Cuba could give China a new lost-cost provider of commodities. If so, it could be a bit of bad news for investors looking for a China-driven commodities run-up.
On Tuesday, Chinese president arrived in Cuba as part of a Latin American tour to strengthen ties with the resource-rich region. And his timing was impeccable.
Just weeks after Cuba’s farm sector and overall economy were rocked by three hurricanes which inflicted more than $10 billion, China parachuted in with almost a dozen trade agreements, according to Cuba’s state-run news agency.
In exchange for wider access to Cuba’s natural resources, China will rehabilitate
...Agricultural Products, China, contrarian profits, Cuba, Cuba Depress Commodity Prices;, decrepit infrastructure;, Havana, Hu Jintao, Latin America, Macau, Market Commentary, offshore oil, USD, Venezuela


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