Oct 08, 2021

Heavy Rains Hit China Slowing Harvest

Heavy Rains Hit China Slowing Harvest

  • Heavy rains hit across northern China this week delaying corn harvest.

  • Reports and videos show severe waterlogging in some fields; in others farmers are pumping out water or buying special equipment to start now.

  • Also of note, a severe coal shortage could hinder the scope of large-scale crop drying.

  • One analyst stated a few million tonnes could be of poorer quality due to the rain.

  • However, most are holding off on crop loss assessments, which could change the outlook for imports.

FBN’s Take On What It Means: China is expected to produce a bumper crop, 273 million tonnes according to the USDA, after tight supplies last year pushed prices to record levels. However, any losses or quality issues could alter import expectations. The USDA sees Chinese imports at 26 million tonnes, though an attaché report this week lowered the expectation to 20 million.


India’s Cotton Exports May Fall on Local Demand

  • Industry officials said India’s cotton exports could fall by 36% in 2021/22 from a year ago.

  • India has seen higher exports and local demand, which depleted stocks to 6.5 million bales from 12.5 million a year ago.

  • Over marketing year 2020/21, the country exported 7.8 million bales.

  • There are also concerns over weather, as heavy rains in September affected early-sown crops in the key producing states.

  • India is the world’s largest cotton producer.

FBN’s Take On What It Means: Fewer cotton supplies out of India could provide strong support to global prices. Recent demand from China has pushed cotton futures to their highest levels in a decade, including trading at limit up for the second straight session on Wednesday. However, mills are being hit hard and rationing may have a stronger influence in the coming months.

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)

The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.

Kevin McNew

Recently Added to Buyer's Guide

HP FiberBoost©

  • Contains functional fibers produced specifically for dietetic use in piglets
  • Fiber stimulates gut and eases transition at weaning

Huve Check-Feed

  • On-site screening test to detect monensin, including Monovet® 90, in feedstuffs
  • Produces accurate, reliable results without adding microtracer particles to feed for detection methods

VM-13.3 G

  • Industrial-grade 13.3-inch LCD monitor
  • Full HD resolution: 1920 x 1080 (1080p/60)

Safety 101

  • Designed to keep all safety activity in one place across all locations
  • Mobile Inspection App to perform walk-around inspections, toolbox talks, JSAs and more

GMS Mixer

  • Fast and gentle mixing
  • Two horizontally arranged, superimposed mixing tools

Centrifugal Sifter

  • Can process up to 100,000 kg/hour, removing foreign bodies as small as 0.1 mm
  • Can be situated in gravity-fed configuration or within inline processes such as a pneumatic conveying line


Marketwatch: Oct, 24

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.1374
high: 5.1867
low: 5.1249
close: 5.1668

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 11.801
high: 11.861
low: 11.7324
close: 11.7679

cmdty National Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.4043
high: 7.5443
low: 7.3993
close: 7.5365

cmdty National Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 6.9986
high: 7.0999
low: 6.9861
close: 7.0671