CME hog futures collapsed in late January on China cornavirus fear. The concern was that China’s import demand would fade leaving US excess pork production in the hands of consumers. Large US pork production amid a concern for China demand pushed cash hog bids lower as cutout margins declined with bellies falling to sharp losses.…
The first quarter of the international marketing year for soybean meal enjoyed record large exports from principal soybean meal exporters. Combined exports from the US, Brazil, and Argentina reached 13.8 MMTs in the Oct-Dec timeframe. The export total was a 1.33 MMT increase (11%) over a year ago, the largest 1-year increase in 9 years,…
Brazil’s crop forecasting agency, CONAB, released its February crop report ahead of the USDA on Tuesday. Early harvest reports from Brazilian producers have shown better than expected yields, and CONAB’s crop survey reflected similar results with a record crop of 123 MMTs. CONAB’s estimate for total soybean area increased by 5,200 hectares from January to…
South American corn production estimates were left untouched, which is common in February. Major exporter stocks and stocks/use were also left unchanged. World corn stocks were lowered 1 MMT (0.3%) on a modest boost in global feed consumption. The Feb report is not often exciting in terms of global S & D changes. Longer term,…
Chinese food inflation in January was pegged at a lofty 21% – the highest in 12 years! This follows a modest cooldown in food prices in January, but it’s clear that China has a major food supply/demand imbalance. China’s hog herd hog numbers are down sharply due to African Swine Fever (ASF). For Chinese pork…
