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November 06, 2019 | FBN Insights | Kevin McNew

China to Resume Canada Beef & Pork Imports

China blocked shipments from Canada in June, citing counterfeit export certificates

China to Resume Canada Beef and Pork Imports 

China blocked shipments from Canada in June, citing counterfeit export certificates.

China also cited the feed additive ractopamine as being a reason for the halt in pork shipments from Canada.  

The lift on the ban can be a positive for the Canadian producers and underscores the lack of availability of protein sources in China as the country continues to battle African swine fever.

Prior to the ban, China was a top destination for Canada’s pork and beef.

FBN’s Take On What It Means:  We believe that China’s re-commitment to import Canadian pork is part of normal business that can be a positive for the U.S. farmer.  Depending on the cuts exported from Canada to China, there is a possibility that US pork exports to Canada could increase as Canada is one of the largest importers of US pork loin and butt primals.  If beef exports rise, we believe that this could reduce the volume of feeder cattle exports to the US which could be supportive of cash market values.     

 

Brazil Farmers Work to End Export Moratorium On Amazon Soybeans

Brazilian farmers plan to start a campaign next week to end a ban by global commodity trading firms like ADM, Bunge, Cargill and Louis Dreyfus on buying soybeans from parts of the Amazon rain-forest cleared after 2008.

The push to end traders' voluntary "soy moratorium" comes despite mounting global pressure on Brazil to protect the environment from its expanding farm frontier.

Fires in the Brazilian Amazon have been widespread this year to clear land for farming.   

Brazilian farmers claim that the moratorium by the large physical traders on buying soybeans from clearing rain-forest unfairly hurts farmers who are complying with domestic laws.  

FBN’s Take On What It Means: We believe that burning acres in the Amazon to increase farm acres is a local Brazilian concern.  However, this action could be a benefit to the US farmer. If the major global agri-trading firms like ABCD uphold their commitment to not purchase soybeans grown in rain-forest cleared after 2008 then any recently increased  production could reside in Brazil and not enter the world export market.         

 

The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)

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