Grain News – Flooding Hampers Grain Movement
This week’s soybean export sales numbers where a disappointment as China bought just 142k tons of old crop and cancelled 65k tons of new crop. Rabonbank estimates China’s pig herd fell 15% in 2018 and their 2019 pork production could fall 20% and predict China will buy two mmt of U.S. pork in 2019 which is double this year’s number. China says top U.S. trade officials to visit Beijing March 28-29. Trump says U.S. ‘will never catch up’ without a great trade deal with China. As Trump speaks on enforcement of the China trade deal. The focus of conversation seemingly is switching to the EU. As the EU wants to exclude Agriculture from a trade deal. EU is positioning, saying a deal with the U.S. could lead to lower food standards because American products aren’t safe. We as American agriculture producers know this to be just untrue and a U.S. trade representative calls this “non-science-based” and “backward-looking”.
Flooding in the Midwest continues to hamper grain movement as reports of $1.5 billion in damages have occurred in Nebraska alone. EPA is likely to grant partial waivers from U.S. biofuel laws for 2018. Nebraska and Iowa spot ethanol margins are now in the green.