South American Forward Corn Sales Increase
- Argentine farmers have dramatically accelerated sales from the upcoming 2020/21 corn harvest.
- Between January 7 and 13, producers sold 1.07 million tonnes of 2020/21 corn to exporters, up from 334,300 tonnes in the same period last year.
- In the last week of December, farmers sold 104,000 tonnes of corn just before the government first stated it would put a hold on exports.
- In Brazil, IMEA reported farmers in Mato Grosso have sold 67% of production, up from 63% last month and well ahead of 57% last year.
- Next year’s corn crop is already 9% sold compared to 7% last month and zero at this time last year.
FBN’s Take On What It Means: Above average sales in Argentina have been motivated by high prices and fear that the government will enact new measures aimed at increasing the domestic supply of corn. Accelerated producer selling in Brazil has been mostly a function of its falling currency which has resulted in higher prices in domestic terms.
China 2020 Soybean Imports
- China's soybean imports in 2020 were a record 100.33 million tonnes.
- Imports from the United States rose by 52.8% to 25.9 million tonnes, up from 16.9 million tonnes in 2019.
- In December, shipments from the US were 5.84 million tonnes, up from 3.09 million the previous year.
- For 2020, Brazilian shipments were 64.3 million tonnes, up 11.46% from 57.67 million tonnes last year.
- Imports from Brazil in December were 1.2 million tonnes, down from 4.8 million a year ago.
- Crush margins at major processors for the beans remain about twice what they were at this time last year.
FBN’s Take On What It Means: China is expected to import even more soybeans in the new year on continued strong demand and crush margins. The elevated demand will be needed to support higher prices in the second quarter of the marketing year until crops are ready from South America.
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