U.S. Pork Exports To China Highest in 3 Years
- U.S. exports of pork to China rose to the highest level in at least 10 months.
- Pork export shipments for the week ending Dec. 12 totaled 15,282 tonnes and was the largest “normal” week in three years.
- Data issued for the week ending Feb. 14 showed 17,215 tonnes exported, but that week's report included several weeks of data that were not reported due to the U.S. government shutdown.
- The U.S. may continue to capture a large share of China's pork demand after the two countries agreed to sign a Phase 1 trade deal last week.
- The USDA said Chinese importers bought a net 5,940 tonnes of U.S. pork last week for shipment by the end of this year, but canceled a net 4,238 tonnes previously purchased for 2020 shipment.
- FBN’s Take On What It Means For The Farmer: We believe that the weekly reported pork export sales to China on top of the U.S.’s normal export business are a positive for the U.S. hog producer. China’s demand for U.S. and global pork amid a supply shock related to African swine fever is well known. We believe that China’s import demand for pork combined with the Phase 1 trade agreement can create sustainable hog demand in the U.S. which is positive for both corn and soybean meal demand.
Mosaic Reduces Fertilizer Production
- On Thursday, Dec. 18th, Mosaic said that the company will reduce its fertilizer production.
- The company plans to cut phosphate production at its Central Florida facilities by 150,000 tonnes per month, in addition to the 500,000 tonne reduction it implemented in the second half of the year primarily in Louisiana.
- Mosaic’s Canadian potash business will also operate at a lower rate.
- Mosaic expects potash and phosphates shipment volumes for the fourth quarter to be modestly below its forecast.
- Production in both phosphates and potash will return to full rates when required to meet customer needs.
- FBN’s Take On What It Means For The Farmer: We believe that Mosaic’s productions cuts are a maneuver to help stabilize earnings. We believe that reduced supply can result in higher prices. This becomes particularly true when wholesale distributors are starting to make decisions about supplies for the 2020/21 crop year in North America. Please contact your FBN farm market advisor (FMA) for guidance about purchasing crop input needs.
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