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    China Buys Brazilian Soybeans Before Trade Deal



    THIS Will show they will buy Beans from them before us ---------------------------------dave








    Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.
    China is picking up soybean cargoes in Brazil, dashing hopes for big American sales immediately after a partial trade deal is signed with the U.S. next week, according to people familiar with the matter.
    Private buyers from China have purchased about 10 cargoes from the South American nation so far this week, said the people, who asked not to be identified because the deals are private. Most of the soybeans are for shipments from January through April, the people said.
    The Brazilian purchases, while not unusual for this time of year, come just as the U.S. and China are expected to sign a phase-one trade pact on Jan. 15. They also highlight China’s willingness to buy American supplies only when they are cheaper than elsewhere.
    Brazil, the world’s largest soybean exporter, is starting to harvest what is forecast to be a record crop, bringing prices down. Brazilian supplies are cheaper than those from the U.S., attracting private Chinese buyers who only focus on crushing margins, according to Monica Tu, an oilseed analyst at Shanghai JC Intelligence Co.
    Cheap Brazil Beans Threaten to Rain on U.S. Farmer Parade: Chart
    China has pledged to buy $40 billion a year in American agricultural products, a high target that will require big purchases of soybeans from the U.S. China’s imports of U.S. soybeans rose to the highest in 20 months in November after more American cargoes cleared customs.
    China has been issuing regular tariff waivers for domestic firms to buy U.S. soybeans. The exemptions cover the 30% retaliatory duties on the American oilseed, which Chinese buyers process into edible oil and animal feed. The country is reviewing tariff exemption applications for U.S. goods worth $60 billion, according to a government statement.


    Last edited by davidm479; 01-09-2020, 09:32 AM.

  • #2
    Agriculture Giant ADM Is in Advanced Talks for Ethanol Market

    The writing is on the Wall ADM was one of the first to get into it now they are first to exit ---------------------dave



    The 118-year old agricultural commodities company is currently in negotiations with fewer than five interested parties, Chief Executive Officer Juan Luciano said in an interview Wednesday at the company’s headquarters in Chicago. He declined to name the companies taking part in the discussions.
    “We are advancing things with several different parties, and I can disclose right now that we are advanced in those discussions,” he said. “We want to find either the right buyer or the right partner for these things, and at this point in time, we haven’t made that decision, but we are close.”
    The American ethanol industry has been hurting after a rapid expansion fueled by a bet on increased demand from China. But President Donald Trump’s trade war with Beijing ended up stifling exports. Meanwhile, biofuel proponents blamed the U.S. administration’s policy of exempting some oil refiners from blending requirements for adding to the industry’s pain.
    This is not the first time ADM, which started producing ethanol in 1978, has tried to divest its dry mills. In 2016, the company put the assets up for sale, evaluated bids and ended up deciding to keep the business.
    “I wanted to make sure from the beginning of my tenure that we were going to focus on nutrition and food, not in fuels,” Luciano said. “I like ethanol as a product -- I do believe there’s a lot of potential -- I just don’t feel that that’s a business for us.”
    ADM moved its three ethanol dry mills into a wholly-owned subsidiary called Vantage Corn Processors last month. The move should facilitate a deal because it separates the three mills and makes clear any agreements that an interested party would have with ADM as the facilities are integrated with other assets.
    “Now if you are an interested party, you know exactly what you get, including all the side agreements that you have with ADM,” Luciano said. “That’s a big step. Now the issue is we need to find the best deal, the deal that makes the best business sense for us.”
    ADM, the “A” in the so-called ABCD quartet of storied agricultural commodities traders, moved into ethanol after President Jimmy Carter asked agribusiness leaders to make biofuels as a way of reducing petroleum dependence. Bunge Ltd., Cargill Inc. and Louis Dreyfus Co. round out the quartet.
    Crop Giant Bunge Exits U.S. Ethanol Production as Margins Crater


    Last edited by davidm479; 01-09-2020, 04:11 PM.

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    • #3
      some of what may be left out of some discussions and media opinions:

      Total pork exports see best month on record in November due to ASF, improved trade relations.

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