Chinese Soybean Imports from Brazil Rise in August
China’s August soybean imports from Brazil rose 10.9% from August 2020, 9.04 million tonnes versus 8.15 million.
Imports from the U.S. fell by about 89% to 17,575 tonnes last month versus 166,370 tonnes last August.
Overall, China imported 9.49 million tonnes of soybeans last month, down slightly from the 9.6 million in August 2020.
Last week, China cancelled orders of U.S. soybeans and bought four to six bulk cargoes from Brazil, unusual for this time of year.
FBN’s Take On What It Means: At a time of the year when Chinese soybean imports from the U.S. should be ramping up, more expensive purchases from Brazil have continued. Shipping delays from terminals in the Gulf have concerned global importers and they have looked elsewhere for grains. However, repairs continue to progress. Bunge, Cargill, and ADM were beginning to load vessels at a number of their terminals last week. CHS reported that its Myrtle Grove, Louisiana terminal would be operational by the height of the U.S. harvest.
Australia Projected to Have Second Consecutive Bumper Wheat Crop
Australia upped its 2022 wheat production forecast to 32.63 million tonnes due to recent favorable weather.
It previously was forecasted at 27.8 million tonnes, a 17% increase.
This would make it second only to last season’s record-breaking harvest.
The two consecutive bumper crops come on the heels of some of the worst drought years in history.
However, the market is straining pandemic-hit supply chains and there is a machinery and labor shortage.
Land values are also seeing strong increases.
FBN’s Take On What It Means: Before last season, Australia had several consecutive years of drought that drove the country to import wheat for the first time in over a decade. Now, however, projections for the current season would cement Australia as the fourth-largest wheat exporter, though it may push even higher if there are further upgrades. Australian farmers are also enjoying global wheat prices that are near eight-year highs, as Canada, the U.S., Russia and France see recent downgrades in their production.
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