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· Seasonal marketing pattern flipped upside down by Brazilian soybean shortage
· China buys 664,000 tonnes of US soybeans, its biggest daily purchase in nearly 7 weeks
Seasonal marketing pattern flipped upside down by Brazilian soybean shortage
By Mark Dorenkamp, Brownfield
September 8, 2020
A Brazilian soybean shortage has flipped the seasonal marketing pattern upside down.
DTN lead analyst Todd Hultman tells Brownfield the soybean market is challenging its highs for the year when it normally bottoms out going into harvest.
“Typically Brazil has plenty of soybean supplies coming off a big harvest as they had earlier this year, and we would expect them to keep exporting at least deeply into the fall. But that wasn’t the case. They actually ran low on supplies earlier than usual, and that was signaled by the higher prices that we saw in Brazil in late July.”
He says there is still a lot of downside risk and encourages producers to consider both old and new crop sales.
“It’s very hard to just count on China exclusively, but I think we need to reward this bullish surprise.”
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China buys 664,000 tonnes of US soybeans, its biggest daily purchase in nearly 7 weeks
The Cattle Site
09 September 2020
USDA data shows Chinese buyers booking 664,000 tonnes of soybeans, the largest daily total since 22 July, for deliver in the 2020/21 marketing year.
Reuters reports that the sales were the latest in a string of large US farm commodity purchases by China, which vowed to increase imports of US agricultural goods as part of a Phase 1 trade deal signed earlier in 2020.
However, Chinese buying in the first half of 2020 totalled just $7.274 billion, while the trade deal called for $36.5 billion in annual purchases.
USDA on Tuesday 8 September also said that private exporters reported the sale of 101,600 tonnes of corn for delivery in 2020/21.
China has been ramping up its US corn imports, as the country faces its first real corn shortfall in years. A sharp price surge in corn - critical for China's mammoth hog, dairy and poultry sectors - is the latest in a series of ructions that include a devastating pig disease, pandemic-driven upsets for international suppliers and warnings of a growing food supply gap.
After months of record soybean imports from Brazil, China has pivoted to buying more soybeans and other goods from the United States...
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