North American Logistics Strike Domino, Shaking the Grain Market" (Cover image: Getty Images Bank)
North American Logistics Strike Domino Shakes Grain Market
Weekly Grain Update | September 2th Week 2024
Here's a brief overview of this week's global grain issues.
1. Russia Expects Decrease in Grain Production
Russia's grain production this year is expected to decrease by 20 million tons compared to last year, reaching 125 million tons. Wheat production, in particular, is projected to fall by 10 million tons to 82.2 million tons. Corn production is also expected to remain at 12 million tons, the lowest level since 2018, raising concerns in the global grain market.
๐ Read the full article >
๐ฌ Russian grain production decrease raises concerns for global supply
2. Increasing Demand for Corn and Soybeans in the US Leads to Liquidation of Short Positions
As demand for corn and soybeans increases in the United States, futures prices for related commodities are rising on the Chicago Board of Trade (CBOT). Investors are injecting vitality into the market through short covering (the act of closing out short positions when prices rise, after initially selling in anticipation of price declines) due to expectations of increased US grain exports.
๐ Read the full article >
๐ฌ US grain demand recovery sends positive signals to the market
3. China Plans to Expand Oilseed Processing
China plans to expand the processing of oilseeds such as soybeans in response to growing demand. The supply of oilseeds is expected to increase, especially due to rising demand for feed. This appears to be China's strategy to revitalize agriculture-related industries and reduce dependence on imports. It's drawing attention as it could also affect the global grain market.
๐ Read the full article >
๐ฌ China's oilseed self-sufficiency strategy becomes a new variable in the global market
4. Mississippi River's Low Water Level Raises 'Red Flag' for US Grain Exports
The lowering water levels of the Mississippi River are causing disruptions in barge operations and grain transportation. Reduced barge loading capacity and increased transportation costs are negatively impacting US grain exports. Coinciding with the peak export season, market uncertainty is growing. Experts warn that this issue could severely impact agriculture and logistics around the Mississippi River.
๐ Read the full article >
๐ฌ Nature-induced logistics disruption intensifies grain market instability
๐ Grainscanner Comments
๐ซ North American Logistics Strike Domino Shakes Grain Market
Recent consecutive strikes at major logistics hubs in North America are disrupting the global supply chain. Notable examples include strikes by US East Coast port workers and Canadian railway workers. Key demands include improved wages and working conditions, and addressing job insecurity concerns due to AI implementation. As the strikes prolong, major export ports' logistics are paralyzed, leading to increased logistics costs and supply shortages, which are expected to expand grain market volatility.
Delays in grain exports can increase prices and volatility in the international market, requiring continuous monitoring and risk management from buyers.
GrainScanner updates new articles every week.
If you're interested in Greenlabs, please contact us.
๐ sungeun.han@greenlabs.co.kr
GrainScanner: Your Partner in Agri-Food Trade
North American Logistics Strike Domino, Shaking the Grain Market" (Cover image: Getty Images Bank)
North American Logistics Strike Domino Shakes Grain Market
Weekly Grain Update | September 2th Week 2024
Here's a brief overview of this week's global grain issues.
1. Russia Expects Decrease in Grain Production
Russia's grain production this year is expected to decrease by 20 million tons compared to last year, reaching 125 million tons. Wheat production, in particular, is projected to fall by 10 million tons to 82.2 million tons. Corn production is also expected to remain at 12 million tons, the lowest level since 2018, raising concerns in the global grain market.
๐ Read the full article >
๐ฌ Russian grain production decrease raises concerns for global supply
2. Increasing Demand for Corn and Soybeans in the US Leads to Liquidation of Short Positions
As demand for corn and soybeans increases in the United States, futures prices for related commodities are rising on the Chicago Board of Trade (CBOT). Investors are injecting vitality into the market through short covering (the act of closing out short positions when prices rise, after initially selling in anticipation of price declines) due to expectations of increased US grain exports.
๐ Read the full article >
๐ฌ US grain demand recovery sends positive signals to the market
3. China Plans to Expand Oilseed Processing
China plans to expand the processing of oilseeds such as soybeans in response to growing demand. The supply of oilseeds is expected to increase, especially due to rising demand for feed. This appears to be China's strategy to revitalize agriculture-related industries and reduce dependence on imports. It's drawing attention as it could also affect the global grain market.
๐ Read the full article >
๐ฌ China's oilseed self-sufficiency strategy becomes a new variable in the global market
4. Mississippi River's Low Water Level Raises 'Red Flag' for US Grain Exports
The lowering water levels of the Mississippi River are causing disruptions in barge operations and grain transportation. Reduced barge loading capacity and increased transportation costs are negatively impacting US grain exports. Coinciding with the peak export season, market uncertainty is growing. Experts warn that this issue could severely impact agriculture and logistics around the Mississippi River.
๐ Read the full article >
๐ฌ Nature-induced logistics disruption intensifies grain market instability
๐ Grainscanner Comments
๐ซ North American Logistics Strike Domino Shakes Grain Market
Recent consecutive strikes at major logistics hubs in North America are disrupting the global supply chain. Notable examples include strikes by US East Coast port workers and Canadian railway workers. Key demands include improved wages and working conditions, and addressing job insecurity concerns due to AI implementation. As the strikes prolong, major export ports' logistics are paralyzed, leading to increased logistics costs and supply shortages, which are expected to expand grain market volatility. Delays in grain exports can increase prices and volatility in the international market, requiring continuous monitoring and risk management from buyers.
GrainScanner updates new articles every week.
If you're interested in Greenlabs, please contact us.
๐ sungeun.han@greenlabs.co.kr
GrainScanner: Your Partner in Agri-Food Trade