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[quote user="Convicted One"] [quote user="Bucyrus"]But what would you say to those who believe that Shanghui will sell to the highest priced market first, with only the excess production going to the lower priced Chinese market?  [/quote] I would say that the Chinese are not buying Smithfield to use as a conduit to sell far eastern pork to the American Dinner table. They are buying it to place more pork on the Chinese dinner table.[/quote] I agree with that, but it misses the point of my question because I did not make it clear.  When I referred to Shanghui selling to the highest priced market first, I meant selling the Smithfield or U.S. produced component of their production.  I did not mean to include the component produced in China. Will China only sell U.S. pork to the Chinese market once it has sold all to the U.S. market that the U.S. market demands?  Or-- will Shanghui forego sales of U.S. produced pork to the U.S. market, leaving U.S. demand unfulfilled, and divert U.S. pork production to the Chinese market?  I expect it to be the latter, but some might say that is hallucinatory unless the Chinese market prices the same as the U.S. market, which it probably cannot do.
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