Export Sales Announcement
- Private exporters reported to the U.S. Department of Agriculture export sales of 293,922 metric tons of soybeans for delivery to Mexico during the 2019/2020 marketing year.
U.S. & Japan Working on Ag Trade Deal
- The United States might opt for a more quick and narrow trade deal with Japan that would address agricultural products, instead of a more comprehensive agreement.
- President Donald Trump last week held one-on-one talks with Japanese Prime Minister Shinzo Abe at the Oval Office and said it was possible that the United States could reach a new bilateral trade agreement with Japan by the time he visits Tokyo in May.
- U.S. farmers could lose export volume to other countries that have reduced tariff rates in Japan following the enacting of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
- The United States withdrew out of the TPP under Trump, hence other countries still in the trade deal like Canada have preferential access to the lucrative Japanese market.
- During last week's talks, Trump said negotiators for the United States and Japan are making progress. President Trump mentioned Japanese tariffs on American agricultural products as an irritant.
- What It Means For The US Farmer: At FBN, we believe that increasing foreign market access for U.S. agricultural exports is a positive for the farmer. The U.S. already does a healthy amount of export business with Japan but the existing quota structure on U.S. beef is one area that is being negotiated.
Ukraine Grain Exports 9 MMT YoY Approaching 43 MMT
- Ukraine's grain exports have reached 42.4 MMT so far in the 2018/19 season compared with 33.9 MMT at the same point last season.
- Ukraine has harvested a record 70 MMT of grain last year, up from about 61 MMT in 2017.
- The Ukraine Agriculture Ministry said exports could rise to about 49 MMT in the season that ends in June, up from 39.4 MMT in the previous year.
- Ukraine had exported almost approximately 23.9 MMT of corn and 14.3 MMT of wheat.
- What It Means For The US Farmer: The pace of Ukraine’s corn and wheat exports have not been a surprise this marketing year and we believe that they are a contributing variable that has helped crowd U.S. corn out of some export destinations. Ultimately we think that the robust supplies of Ukrainian corn have been a net-negative for the U.S. farmer during the 2018/19 marketing year.
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