China Set To Start Buying Argentine Soybeans, As Argentina Buys More U.S. Soybeans
Oil World, an oilseed analysis firm, estimates that China will significantly increase their purchases of Argentine soybeans from Sep 2018 to Feb 2019. Oil World estimates 1.8 MMT of bean sales, compared to the same time period last year showing no sales of beans from Argentina to China. Argentina has a very large soy crushing industry and saw a very poor crop this past year so in order to cover the needs of domestic crushers, Argentina has resorted to buying soybeans from the U.S. Thus far, Argentina has bought 850,000 MT for the current crop marketing year and Oil World expects that number to nearly double to 1.6 MMT by Feb 2019. Argentina is the world’s largest exporter of soymeal but with the ongoing trade war between the U.S. and China and tight supplies in Brazil, the Argentines will export raw, unprocessed beans to be crushed in China.
With Deadline Looming, No Trade Deal Between U.S. and Canada in Sight
September 30 is the deadline that US Trade Representative Robert Lighthizer has set for the US and Canada to reach an agreement on updating and modernizing NAFTA. At this point, both parties have yet to come together on key issues and a deal by the end of the month seems distant. The Trump Administration will move forward with the bilateral deal reached with Mexico, with or without Canada, according to Lighthizer when he spoke to the US Chamber of Commerce. Canadian trade officials have agreed to make concessions on importing US dairy products but wish to see President Trump agree to abandoning all threats of tariffs, particularly against the Canadian auto industry.
Export Sales Announcement
Private exporters reported to the U.S. Department of Agriculture export sales of 650,387 metric tons of soybeans for delivery to Mexico during the 2018/2019 marketing year.
Freezing Temperatures Forecast in West, More Rain Expected for Iowa and Illinois
In parts of W Nebraska, W South Dakota, and W North Dakota, overnight lows are expected to dip down to the upper 20s F, as reported by the National Weather Service. Plants still growing may be at risk. In E Iowa and W Illinois, heavy rainfall over the past ten days has caused rivers and streams to flood and more rain and cooler temps are forecast for Friday.
Starting on Friday and into early next week, this area could see frost overnight, as well as heavy thunderstorms.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
