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.
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