Headlines:

  • China buys more U.S. soy as officials meet for trade talks
    Chinese importers made their third large U.S. soybean purchase in the past month on Monday, as officials from both countries meet this week for the first face-to-face talks since agreeing to a 90-day trade war truce on Dec. 1, two traders with knowledge of the deals said. Chinese state-owned firms bought at least three cargoes of U.S. soybeans on Monday morning, or about 180,000 tonnes, the traders said. One of them said the total was closer to 15 cargoes, or about 900,000 tonnes. The soybeans will be shipped mostly from terminals in the Pacific Northwest from January through March, with a smaller volume to be exported from U.S. Gulf Coast terminals, the traders said. U.S. soybean exports to China, the world’s top buyer, have plummeted this season during a bitter trade dispute, with swelling supplies sending prices to near decade lows and U.S. farmers struggling to turn a profit.
  • China Grants Regulatory Approval of TruFlex Canola With Roundup Ready Technology
    Today’s GMO ruling by China’s Ministry of Agriculture and Rural Affairs (MARA) also will enable Canadian and U.S. canola farmers to access Bayer’s next-generation canola trait. MARA has granted safety certificate approval for the import and food/feed use of TruFlex canola with Roundup Ready technology (MON88302), say Bayer officials. MARA has notified Bayer that a safety certificate for TruFlex canola has been granted. “After five years of waiting to introduce this product to Canadian and U.S. farmers we are thrilled to move forward with commercialization in 2019,” said Jon Riley, trait launch lead with Bayer, in a company news release. “Farmers want, and need, new technology to help drive yield on their farms and they are looking forward to planting TruFlex canola this coming season.” TruFlex canola is part of an improved canola system compared to Genuity Roundup Ready canola and is designed for a range of growing conditions, says Bayer officials.

Summary:

Soybeans were higher in early trading today but profit taking erased those gains after prices had hit the highest in almost a month. It was also dragged down by some less than positive comments by US Commerce Secretary Wilbur Ross. Prices earlier hit the highest level since Dec. 12 on optimism about Chinese purchases of US soybeans and bad weather in Brazil. Presidents Donald Trump and Xi Jinping at the start of last month came to an agreement under which the US would hold off on raising its tariff rate on Chinese goods until March 1 if China would buy more agricultural products. Both countries have made good on their promises, which underpinned prices since mid-December, leading some investors to book profits after the price increase. Ross said in a speech that the US and China could reach a deal that “we can live with,” which wasn’t resoundingly optimistic, but showed that negotiators from both sides are willing to deal. Yesterday, he said that “there’s a very good chance” the sides will find a “reasonable” settlement. If a trade agreement isn’t made between the world’s two largest economies by March 1, the White House has said it will bump the tariff rate on Chinese goods to 25% from their current level of 10%. China would likely retaliate should that happen. Wheat finished positive on the day but corn also finished slightly lower.