This Week in Grain - November 30, 2018

by Jim Gallagher

12:54 PM 11/30/2018

The following is an article from the Chicago Mercantile Exchange
U.S. agricultural production has shrunk as a share of the world total.  Since 1997, U.S. corn production has declined from 41% to 34% of the world total, while soybean production has fallen from 46% to 33%.  Wheat production has shrunk from 11% to 6.5% of the world total.  Meanwhile, Brazilian production of corn has tripled and soybean output has nearly quadrupled.  Argentina has seen its production of corn and soybean grow by 100% and 200%, respectively, over the same period. Meanwhile, Russian and Ukrainian wheat production has risen by nearly 50%

Karen Braun (Thomson Reuters Columnist) reports
China imported 18% more soybeans in October 2018 than in October 2017.  Brazil accounted for 58% of that in 2017 and 94% of that in 2018.  United States accounted for 23% of that last year and 1% this year.

Everyone is watching the meeting that is supposed to happen on Saturday between President Trump and Chinese President Xi.  Friday's market is reflecting optism heading into this meeting.  Other items that are being watched include the unrest in the Black Sea region, which can disrupt grain exports from Ukraine and Russia, and the new trade pact being signed with the US, Canada, and Mexico.

Even with an agreement between the US and China, bean fundamentals are still poor.  

Jim Gallagher

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