China and U.S. to Restart Trade Talks Later this Month
The United States and China will begin a new round of trade negotiation in late August. The last meeting between Chinese and American trade officials was back in early June when Commerce Secretary Wilbur Ross met with Vice Premier Liu He in Beijing. The new talks will be held between US Under Secretary of Treasury for International Affairs David Malpass and Vice Minister of Commerce Wang Shouwen, lower level officials than seen previously. A date has not yet been given for the new talks but Aug 23 is when the Trump Administration is set to implement $16 billion worth of tariffs on Chinese products.
Export Sales Announcement
Export sales of 154,404 metric tons of soybeans for delivery to Mexico during the 2018/2019 marketing year. Export sales of 200,000 metric tons of hard red winter wheat for delivery to Iraq during the 2018/2019 marketing year.
Ethanol Production Falls From Last Week, Stocks Continue To Grow
Following last week’s 7 month high production number of 1.1 million barrels per day of ethanol, output fell to 1.072 million barrels per day for the week ending on Aug. The EIA also reported that stockpiles of the biofuel rose to 23.017 million barrels, up from last week’s 22.923 million barrels. This is the highest level of ethanol inventories since March 16. This week, Senator Chuck Grassley (R-IA) claimed that the EPA is no longer considering letting refiners use ethanol and biodiesel exports to count towards their blending requirements as mandated by the Renewable Fuel Standard. This is a positive sign for corn growers and ethanol producers, as biofuel demand would not be diverted away from domestic consumption.
Corn, Wheat Export Sales Remain Strong, US Continues to Find Bargain Buyers
Net sales of wheat for export for the 2018/19 came in at 803,000 MT, a high for the marketing year. Top buyers were Mexico, the Philippines, and Nigeria.
Old crop corn sales were reported at 339,000 MT, down 39% from last week and down 26% from the 4 week average. New crop corn sales came in at 1,044,800 MT, with top buyers being unknown destinations, Mexico, Japan, and South Korea. Old crop soybean sales were down 68% week on week and 52% from the 4 week average at 133,400 MT. New crop bean sales were 571,600 MT. The largest buyers were unknown destinations, Mexico, and Turkey.
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