China to Fight Back Against Latest $16 Billion Tariffs from U.S.
Late Wednesday night, China announced that it would enact its own tariffs of 25% on $16 billion worth of U.S. goods and claims that the U.S. is operating under a “mobster mentality." This comes as a response to the Trump Administration’s decision to put in place the second leg of 25% tariffs on $16 billion worth of products from China on Aug 23. So far, China has implemented or proposed $110 billion worth of tariffs against the United States. Notable exclusions from Chinese tariff lists are crude oil and large aircraft.
Export Sales Announcement
Private exporters reported to the U.S. Department of Agriculture export sales of 135,000 metric tons of soybean cake and meal for delivery to the Philippines during the 2018/2019 marketing year.
Ethanol Production Hits 8-Month High, Stockpiles Continue to Grow
The EIA reported that ethanol production for the week ending on Aug 3 reached 1.1 million barrels per day, up from 1.064 mbd last week and the highest since Dec 1, 2017. Stockpiles of the biofuel also built to 22.923 million barrels, another high not seen since Mar 16. Andrew Wheeler, acting EPA chief, is set to visit the Iowa State Fair next week to learn more about the ethanol and biodiesel industries. The former head of the EPA, Scott Pruitt has been criticized by Midwestern lawmakers for issuing hardship waivers to refiners, allowing them to forego their blending requirements as mandated by the Renewable Fuel Standard.
Soybean Exports Pick Up As New Buyers Pick Up China’s Slack
Old crop soybeans reported export sales for 421,800 MT, surpassing analysts’ expectations. New crop beans also came in at the high end of the expected range at 532,500 MT. The top buyers were the Netherlands, Egypt, and Pakistan. Cheap US beans remain attractive for Dutch oilseed crushers. Old crop corn exports increased 90% from last week and were 33% higher than the 4 week average, coming in at 554,500 MT. New crop sales were reported at 657,700 MT. Major buyers this week were Mexico, South Korea, and Japan. The USDA Foreign Agricultural Service estimated this week that 2017/18 corn exports to be the second highest on record at 61 MMT. Wheat numbers fell right in the middle of analysts’ expectations at 317,100 MT; a 17% drop from last week but up 5% on the 4 week average. The biggest buyers were Japan, Indonesia, and the Philippines.
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