China to Loosen GMO Restrictions for Corn and Soy
China's agriculture ministry approved two new genetically modified (GM) crops for import which could help boost agricultural purchases from the United States.
China has also renewed permits for 10 others GMO crops.
The new GM crop approved is Corteva AS-81419-2, a soybean variety.
China also renewed permission for BASF T25 corn, A5547-127 soybean, T45 canola, Oxy-235 canola, and Ms8Rf3 canola.
Monsanto’s MON89788 soybean, 15985 cotton and H7-1 beet were also re-approved.
Pioneer's 305423 soybean and 305423×GTS40-3-2 soybean varieties were also re-approved.
FBN’s Take On What It Means: We believe that China’s movement to both approve new varieties and renew approval for GMO corn and soybean varieties is a positive for the U.S. farmer. A key item during the trade negotiations between the US and China was that the US wanted China to allow for looser GMO restrictions and a faster approval process for GMO varieties. At FBN, we believe that more approvals of corn and soybean GMO varieties can help export opportunities which can be supportive price.
December Hogs & Pigs Report Shows Continued Expansion
The USDA’s December Hogs & Pigs report showed continued expansion of the domestic hog herd from December 2018.
As of December 1, 2019, the USDA estimated that the U.S. hog herd was 77.338 million head (MH), +3% yoy.
At the national all categories including: market hogs, pig crop, and breeding herd, were higher than 2018.
The spring 2020 pig crop, hogs farrowed in March-May, is estimated to be +6% from 2019.
The USDA revised the previous pig crops for 2019 higher.
FBN’s Take On What It Means: At FBN, we believe that the December Hog & Pig report represents a positive for continued corn and soybean meal demand at the national and state level. Almost all of the key hog producing states exhibited constant growth of the hog herd which we believe is a positive for current and future feed gain demand and basis opportunities.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)