US Agricultural Futures Softer In Overnight Trading
EPA reaffirms glyphosate does not cause cancer; Chinese imports of US soybeans soar in December
U.S. EPA Reaffirms Glyphosate Does Not Cause Cancer
In a regulatory review, the US Environmental Protection Agency (EPA) found glyphosate, the most widely used weed killer in the US, is not a carcinogen.
The EPA concluded that there are no risks of concern to human health when glyphosate is used according to the label.
The conclusion reaffirms the EPA’s stance on glyphosate, the key ingredient in Roundup.
Bayer AG bought Roundup manufacturer in 2018.
U.S. juries that have found that Roundup was responsible for plaintiffs' cancer in some trials.
Bayer is appealing some of those verdicts.
FBN’s Take On What It Means: We believe that the EPA’s decision represents an interesting outcome. Brazil and other countries have already classified glyphosate as non-carcinogenic. We’re unsure how this decision by the EPA can impact sales of Roundup and other related herbicides. Please contact your FBN Farm Market Advisor (FMA) for more information.
Chinese Imports of US Soybeans Soars In December
According to Chinese Customs data, China's imports of U.S. soybeans surged during December.
China imported 3.09 million tonnes (MT) of soybeans from the US in December which is 44 times larger than December 2018.
The figure was also up from 2.56 MT in November, after some delayed cargoes cleared customs.
China's December shipments from Brazil was 4.83 MT, up 10% from 2018, and up 25% from November.
In 2019, China imported 57.67 MT of Brazilian soybeans; -12.8% from 2018.
FBN’s Take On What It Means: We believe that Chinese buying during the late summer and early fall was a result of the government reducing the import tariff for select companies was a positive for the US farmer. Since the Phase-1 trade deal was signed on Jan. 15 Chinese purchases of US soybeans has been slow.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)