Brazil’s Corn Exports Hit Record for July; Soybeans Slip
- Corn exports hit 6.3 million tonnes for July, which was the highest monthly total on record.
- Brazil’s strong shipments have hampered U.S. prospects.
- Line up data for August suggests another near-record month could be in store for August.
- Soybean exports fell 23 percent to 7.8 million tonnes on slowing demand from China, tied to the African Swine Fever issue.
- What It Means For The US Farmer: At FBN, we believe that Brazil will remain a key competitor for U.S. export prospects for both corn and soybeans. Some analysts expect Brazil to increase corn plantings this season. The demand side of the U.S. balance sheet likely remain under pressure into the crop year on export competition from the major South American producer.
- On Thursday, President Trump announced he would impose an additional 10 percent tariff on $300 billion of Chinese imports, starting September 1.
- The president blamed China for not following through on promises to purchase more U.S. agricultural products.
- It is widely expected that China will retaliate with additional tariffs on U.S. goods.
- The announcement pressured U.S. markets on Thursday, both futures and stocks.
- Another round of talks is scheduled for September.
- What It Means For The US Farmer: At FBN, we believe the trade dispute between the U.S. and China is far from over. China is expected to continue to purchase marginal amounts of U.S. agricultural commodities, relative to recent history, to placate the U.S. We believe that market-moving purchases are unlikely. FBN believes that price strength in corn and soybean futures can be tied to supply issues rather than export demand for the coming months.
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