CoBank, very favorable conditions for US ag producers

게시됨 2021년 4월 9일

Tridge 요약

The first quarter of 2021 saw a significant increase in grain export demand from China, leading to favorable market conditions for U.S. agricultural producers, as highlighted in CoBank's latest report. This surge in demand, despite China's efforts to reduce corn and soybean meal in animal feed, is attributed to the country's strong feed demand and lower prices of U.S. exports compared to local grain prices. However, CoBank cautions that factors such as African swine fever in Asia, the inversion in forward curves for corn and soybean futures, and rising basis levels for corn and soybeans in the U.S. could lead to grain price volatility. Additionally, protein producers are experiencing pricing advantages that help mitigate the high feed prices, with the pork market showing optimism despite concerns about feed and other cost inflation.

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원본 콘텐츠

Grain price rally, demand from China contributing factors, but several issues could still lead to volatility Many U.S. agricultural producers are experiencing very favorable market conditions, according to CoBank’s newest quarterly report, which declared “agriculture has its swagger back.” During the first quarter of 2021, exports to China for corn, soybeans, wheat and sorghum increased by 269% vs. an increase of 59% to all destinations. This is even as China’s agriculture ministry in March said it was looking for ways to lower corn and soybean meal content in animal feed and has asked nutritionists to come up with guidelines for use of alternative grains. China’s feed demand remains strong as it rebuilds its hog herd, and grain prices in China are much higher than U.S. export prices, making it cheaper for China to import supplies. In the U.S., CoBank said, “the grain rally has continued and the quarter ended with a positive spike following a ‘bullish shocker’ planting intentions ...

출처: Feed Strategy