China Set to Import US Corn as Early as January
Bloomberg is reporting that Chinese officials are preparing to resume imports of US corn as soon as January 2019 in a sign that trade tensions between the two countries may be easing. China may be looking to buy as much as 3 MMT in the early part of 2019 following the recent sales of soybeans that were announced following the G20 Summit in Argentina where President Trump and Chinese President Xi Jinping met in 1-on-1 meetings to discuss trade. The details of how China would work around the 25% tariffs currently in place on US farm products have yet to be ironed out.
Export Sales Announcements
Export sales of 300,000 metric tons of soybeans for delivery to China during the 2018/2019 marketing year; and Export sales of 130,000 metric tons of soybeans for delivery to unknown destinations during the 2018/2019 marketing year; and Export sales of 125,000 metric tons of corn for delivery to Japan during the 2018/2019 marketing year.
USDA Confirms Sales Of Soybeans To China But No Concrete Trade Deal In Place Yet
The USDA printed the export sales announcement yesterday for the sale of 1.13 MMT soybeans to China, officially confirming the claims made by both President Trump and Chinese officials of China resuming purchases following the G20 Summit in Argentina. USDA Secretary Sonny Perdue was hopefully for more sales in remarks made to reporters by US Trade Representative Robert Lighthizer continues to lead the negotiations with the trade officials from China. Soybeans traded lower in the overnight session, with Jan 19 down around 2 cents to $9.05 per bushel as the market seeks clarification on US-China relations moving forward.
Chinese Production Estimates For 2018 Crop Show A Drop In Corn And More Soybeans
China’s National Bureau of Statistics published data last Friday that showed that corn production in the country fell 1.7 to 257.3 MMT in 2018, a drop of nearly 0.6% from 2017. For soybeans, the production number was raised by nearly 4% to 19.1 MMT. The Chinese government undertook an “emergency” program to increase bean production leading up to the trade tensions with the United States. China is the world’s 2nd largest producer of corn. The government will encourage farmers to plant more soybeans in the Spring although corn economics remain favorable in areas in the northeast.
Fog Advisory In Place For Much Of The Central Midwest
E Iowa, NE Missouri, and much of the western half of Illinois have been issued a dense fog advisory by the National Weather Service. Visibility may be reduced to as little as a quarter mile and roadways can become slick as frost may start to form, particularly in the central part of Iowa. Further to the south, counties in S Missouri are under a flood watch as several inches of rain are in the forecast from Friday through Saturday, possibly causing creeks and streams to rise past their banks.
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