Market Notes: July 13, 2017

India pulse seeding picks up

Analysts had expected that low pulse prices in India would discourage seeding of the crop, but so far farmers are sticking with it.

Up to July 7 farmers had seeded 10.9 million acres of pulses, up from 8.9 million at the same point last year.

Planting will continue for at least another month.

The monsoon has been good so far and is encouraging planting, with acreage of all summer crops, including rice, cotton, soybeans and sugar cane, up nine percent over last year at this point.

weather varies across china

Southern China has suffered excessive rain and flooding in recent weeks, while drought has been a problem in the north.

The flooding in the south has affected rice production, while heat and dry weather are affecting corn in the north.

The U.S. Department of Agriculture’s weekly weather report noted that soil moisture and irrigation remained adequate for summer crop establishment, but temperatures of 35 C increased soil moisture loss.

The eastern part of key corn producer Heilongjiang province in northeastern China had adequate moisture, but it is drying out in the western part.

Dry weather in recent months has slowed corn planting and damaged young crops in parts of the northeastern corn belt, including Liaoning province, stirring worries about output. The Chinese government’s forecast for corn production is 211.6 million tonnes, down 3.6 percent from last year and the smallest in four years

Rain was expected in Liaoning July 7, providing relief from the dry weather stress.

China has huge corn stocks in storage.

Soybean cargoes pile up at China’s ports

Ships carrying as much as 700,000 tonnes of soybeans are lined up along China’s coast waiting to discharge, traders said, as huge purchases in recent months by the world’s top buyer led to severe congestion and lifted stockpiles to multi-year highs.

China imported a record 9.59 million tonnes of soybeans in May, and arrivals last month probably reached about nine million tonnes, traders said.

But while buyers rushed purchases, tougher customs inspections have slowed movement of cargoes through ports.

Soybeans discharged into port warehouses are often held for up to a week before being certified for import by quarantine authorities, the first trader said.

A reduction in value-added tax on soybeans to 11 percent from 13 percent from July 1 also pushed some buyers to delay imports, added the second trader.

 

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