Chinese Buyers Snub US Beans
China's purchases of U.S. soybeans have come to a grinding halt, trade and industry sources say, as fears of further action by Beijing to curb imports of U.S. crops following last week's anti-dumping move on sorghum rattles the agriculture industry. At stake are 3 MMT of soybeans for which deals have been signed but cargos have yet to leave U.S. ports. One Chinese crusher said they wouldn’t “dare” buy US beans as a state-run plant. They are now buying Brazilian, Canadian and some Argentina beans. Talks expected to be held next week between the Chinese and U.S. governments may decide whether tariffs will be imposed or not.
Weather Models Mixed
The latest run shows a drier pattern for US HRW wheat belt. The Wheat Quality Council Tour begins next week, which covers KS/CO/NE. The 6 to 10 day shows wet coming into the corn areas which could stall planting just as it starts to take off. Wetness was also showing up in the 6 to 10 day for Brazil’s safrinha corn region.
IGC Lowers Argentina Bean Crop
Argentina's soybean crop is expected to decline to 38 MMT following hot and dry weather this year, International Grains Council senior economist Darren Cooper said on Wednesday. That’s on par with Argentina's agriculture ministry last week of 37.6 MMT and below USDA at 40 MMT.
China Corn Acres to Dip
China's 2018 corn acres are expected to slip by 333,000 hectares, an agriculture ministry official said in a briefing on Wednesday. The production decline represents less than 1% of China's estimated corn acreage last year, or around 35.4 million hectares. But, many expect corn output will still increase in the coming year, as supportive prices encourage farmers to plant more. Last week experts forecast a 1 percent increase in output to 218 MMT. Even so, estimated demand of 245-250 MT a year will far outstrip production there next year drawing down stocks from 80 MMT to 48 to 53 MMT which would be their lowest point since 2010.
Export Deals
South Korea's Feed Leaders Committee (FLC) rejected all offers and made no purchase in an international tender for about 69,000 tonnes of corn. The lowest offer was said to be $220.97/MT CIF, with origins being offered up at US PNW, US Gulf, Black Sea, South America and South Africa. South Korea's largest feedmaker Nonghyup Feed Inc (NOFI) has issued an international tender to purchase 60,000 MT to 65,000 MT of feed wheat to be sourced from optional origins. The Taiwan Flour Millers' Association purchased 92,975 MT of milling wheat to be sourced from the United States. It was a variety of DNS, HRW and W White shipments. This same group last bought a similar sized deal of US wheat March 13.
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