The strained trade relationship between the U.S. and China is having a fundamental impact on world grain markets, according to speakers at the Grain Market Outlook Conference.
The U.S. Department of Agriculture’s Seth Meyer delivered the keynote presentation at the annual event hosted by the AHDB, which brought together 150 stakeholders from across cereals and oilseeds supply chain reports Black Sea Grain.
He said the U.S. would break with the norm of supplying China for six months of the season and was looking to export to elsewhere in the world year round.
At a global level, drought in key growing regions has been partly responsible for a tightening of the wheat market, with the market also sensitized by the potential for Russian export controls.
And while rapeseed supplies remain tight, with China forecast to import an additional 11% in 2018/19, record soybean production in the U.S. means prices have not seen a significant a rally.
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