China Makes Large U.S. Pork Purchase

Export Sales Announcement-

Private exporters reported to the U.S. Department of Agriculture export sales of 296,500 metric tons of soybeans for delivery to unknown destinations during the 2019/2020 marketing year.

China Makes Large U.S. Pork Purchase Following Cancellation

USDA’s export sales data showed China was in the line up for a pork purchase for the latest week.

The net-sales at 10,211 tonnes follows a net cancellation for the week of July 25 for 12,222 tonnes.

China’s outstanding sales of U.S. pork are large at 106,833 tonnes with total commitments at 264,897 tonnes.

Commitments are more than twice the largest total since 2013.

While that total is minor compared with China’s total pork consumption, it does show China is in enough need of pork to purchase the product from the U.S. despite the trade tensions that are present.

What It Means for the U.S. Farmer:At FBN, we believe that China will remain a buyer in the U.S. pork market at volumes well above average. We further believe that China will continue to purchase other U.S. products, though the volumes likely will remain below historical totals. China still is battling with African swine fever and is looking for other areas to offset the reduction in available protein.

NOPA July Crush at Sixth-Highest Monthly Total

After dropping to a 21-month low in June, NOPA data showed July soy crush at 168 million bushels, well above average trade expectations at 156 million.

This was the largest monthly total since March and compared with June at 149 million.

While crush was up for the month, soybean oil stocks fell to a 20-month low at 1.467 billion pounds, which was tighter than the average trade expectation at 1.53 billion.

What It Means for the U.S. Farmer:At FBN, we believe crush totals will remain above average in the final month of the 2018/19 marketing year. This month’s upswing was not surprising given the seasonal upswing typically exhibited during July. However, FBN does look for a modest slowdown in crush for 2019/20, compared overall with 2018/19.

期货交易的风险,套期保值,speculating can be substantial. FBN BR LLC (NFA ID: 0508695)

—Kevin McNew