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Dec 29, 2020

Markets Watch Negotiations in Argentina

Rosario port terminals have not received soybeans since strike started, causing delay in loading more than 100 cargo ships

Argentine Strike Talks To Resume

  • A labor ministry official announced that the government will sponsor the new round of negotiations starting today.
  • Rosario port terminals have not received soybeans since the strike started, causing a delay in the loading of more than 100 cargo ships.
  • The soyoil manufacture and export association has raised their wage offer to increase salaries by 35% in 2021.
  • The group also offered a 70,000 peso (about $840) bonus to compensate for Covid risks.
  • The striking unions rejected the previous offer last week, which did not include the Covid bonus.
  • Union representatives have not responded to the latest offer.

FBN’s Take On What It Means: After more than two weeks the government has begun to officially weigh in on the dispute. A prolonged stoppage threatens the country’s finances, as the government struggles to get out of recession. Agricultural export sales are the country’s main source of export dollars needed to stabilize the falling currency and help fund coronavirus relief efforts. A resolution of the strike may lead to some further profit taking into the year-end from speculative funds that have been long for some months.


China to Miss Import Targets

  • In the first 11 months of the year, China purchased about 50.5% of the total 2020 import target of $172 billion.
  • China has purchased 53% of agricultural goods needed to meet the mark.
  • This year’s target for purchases of agricultural products is $36.6 billion, $12.5 billion on top of 2017’s levels.
  • Soybean imports reached $8.1 billion in January to November compared with $13.9 billion in 2017.
  • An expanding hog herd in China may limit US pork exports in 2021.
  • China’s pork purchases have been trending lower, and have fallen from $161 million in July to just under $75 million in November.

FBN’s Take On What It Means: The outlook for the trade deal remains uncertain as a new US administration prepares to take office soon. The Phase 1 trade deal targets were always seen as aggressive and many questioned whether they could be met, and then the coronavirus pandemic hit. President Elect Biden has been a vocal critic of China’s trade practices and may bring greater human rights and climate concerns into the equation.

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Kevin McNew

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Marketwatch: Jan, 18

US Corn Price Idx: ZCPAUS.CM

open: 5.7667
high: 5.8486
low: 5.7266
close: 5.8288

US Soybean Price Idx: ZSPAUS.CM

open: 13.366
high: 13.376
low: 13.2328
close: 13.2696

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.3061
high: 7.3384
low: 7.2334
close: 7.2454

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.0114
high: 7.0566
low: 6.9566
close: 7.0014