China Delegation Set to Inspect Argentina Crushers in August
- Argentina has been trying to gain access to China’s soymeal market for two decades.
- China customs inspectors are scheduled to arrive on August 18 for a two-week trip with plans to visit multiple facilities.
- Argentina is the world’s largest soymeal exporter, while China is the world’s largest soybean importer.
- China typically imports only minor amounts of soy products, including meal.
- What It Means For The US Farmer: If China and Argentina agree to trade soymeal, FBN believes this could be another dent in the U.S. soybean balance sheet. The demand side of the U.S. balance sheet remains at risk, but China may be reluctant to import substantial amounts of meal in the near term as it maintains efforts of protecting its domestic crush industry. FBN believes that long term, this could further negatively impact U.S. soybean export prospects to China, but no major changes are expected for 2019/20.
US Export Sales Overall Disappointing for Grains, Oilseeds
- The disappointing demand story continues with the latest export sales report offering little to get excited about.
- New-crop sales for corn and soybeans were mediocre, with corn new-crop sales below last week’s total.
- Wheat sales slumped to about half the value of last week’s total as buyers look to other countries such as Russia and the EU.
- New-crop cotton sales were solid.
- What It Means For The US Farmer: At FBN, we believe that the demand side of the balance sheets for corn and soybeans will remain under pressure with the story for now related to supply for both crops. FBN believes interest in U.S. wheat will come later in the crop year while cotton sales are on track to a solid export program for 2019/20.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)