Record Grain Production Yet Stock Shortages? IGC's Market Foreca (Cover image: Getty Images Bank)
Record Grain Production Yet Stock Shortages? IGC's Market Forec
Weekly Grain Update | September 26th Week 2024
Here's a brief overview of this week's global grain issues.
1. Record Grain Production, but Will Stocks Stabilize Due to Rising Demand?
The International Grains Council (IGC) projects that global grain production for the 2023/24 season will reach a record 2.3 billion tons. However, with global demand also on the rise, grain stocks are expected to remain relatively low. Production of key grains such as corn, wheat, and rice is anticipated to increase, with particularly strong demand expected for corn and rice. This balance between supply and demand will play a crucial role in shaping the global grain market.
๐ Read the full article >
๐ฌ Record-Breaking Production and Demand!
2. China Reduces U.S. Soybean Imports in Favor of Brazilian Supply
China has significantly increased its imports of Brazilian soybeans, while its annual imports of U.S. soybeans have more than halved. As the export competition between the U.S. and Brazil intensifies, China's import patterns are increasingly shifting toward Brazilian soybeans.
๐ Read the full article >
๐ฌ No Matter the Competition, China Remains a Key Customer
3. U.S. Soybean Sales Strong, But Export Outlook Remains Gloomy
Despite recent strength in U.S. soybean sales, it is not enough to improve the overall export outlook. Projections for the 2023/24 marketing year suggest a decline of around 18%, largely due to Brazil's record harvest and robust sales. While there is potential for a rebound in U.S. soybean exports, current sales levels are unlikely to significantly alter the broader export forecast.
๐ Read the full article >
๐ฌ U.S. Soybeans Are Selling, But Brazil is Blocking the Way
๐ Grainscanner Comments
Gradually Rising Grain Prices: The Need for Strategic Response by Domestic Companies
Recently, the surge in wheat, corn, and soybean prices in the grain futures market has prompted domestic grain-using companies to exercise caution. The main factors behind this price increase are as follows:
Firstly,
While the U.S. grain harvest has exceeded expectations, alleviating supply concerns, strong demand continues to drive prices up. In the case of soybeans, the recent easing of trade tensions between the U.S. and China has boosted exports, leading to higher prices. Similarly, despite increased corn production in the U.S., global demand for feed and biofuels is pushing prices higher.
Secondly,
The rise in wheat prices is largely due to global supply uncertainties caused by extreme weather events and supply chain issues. In particular, the ongoing conflict between Ukraine and Russia has disrupted grain exports from the Black Sea region, further contributing to the increase in wheat prices.
Market Volatility and Response Strategies
In this environment, grain-purchasing companies must strategically respond to price volatility and supply chain instability. For instance, employing hedging strategies to manage price risk and exploring diversification of supply chains to mitigate uncertainty are essential.
It is crucial for companies to continue responding swiftly to international market changes and develop strategies to minimize risks.
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
Record Grain Production Yet Stock Shortages? IGC's Market Foreca (Cover image: Getty Images Bank)
Record Grain Production Yet Stock Shortages? IGC's Market Forec
Weekly Grain Update | September 26th Week 2024
Here's a brief overview of this week's global grain issues.
1. Record Grain Production, but Will Stocks Stabilize Due to Rising Demand?
The International Grains Council (IGC) projects that global grain production for the 2023/24 season will reach a record 2.3 billion tons. However, with global demand also on the rise, grain stocks are expected to remain relatively low. Production of key grains such as corn, wheat, and rice is anticipated to increase, with particularly strong demand expected for corn and rice. This balance between supply and demand will play a crucial role in shaping the global grain market.
๐ Read the full article >
๐ฌ Record-Breaking Production and Demand!
2. China Reduces U.S. Soybean Imports in Favor of Brazilian Supply
China has significantly increased its imports of Brazilian soybeans, while its annual imports of U.S. soybeans have more than halved. As the export competition between the U.S. and Brazil intensifies, China's import patterns are increasingly shifting toward Brazilian soybeans.
๐ Read the full article >
๐ฌ No Matter the Competition, China Remains a Key Customer
3. U.S. Soybean Sales Strong, But Export Outlook Remains Gloomy
Despite recent strength in U.S. soybean sales, it is not enough to improve the overall export outlook. Projections for the 2023/24 marketing year suggest a decline of around 18%, largely due to Brazil's record harvest and robust sales. While there is potential for a rebound in U.S. soybean exports, current sales levels are unlikely to significantly alter the broader export forecast.
๐ Read the full article >
๐ฌ U.S. Soybeans Are Selling, But Brazil is Blocking the Way
๐ Grainscanner Comments
Gradually Rising Grain Prices: The Need for Strategic Response by Domestic Companies
Recently, the surge in wheat, corn, and soybean prices in the grain futures market has prompted domestic grain-using companies to exercise caution. The main factors behind this price increase are as follows:
Firstly,
While the U.S. grain harvest has exceeded expectations, alleviating supply concerns, strong demand continues to drive prices up. In the case of soybeans, the recent easing of trade tensions between the U.S. and China has boosted exports, leading to higher prices. Similarly, despite increased corn production in the U.S., global demand for feed and biofuels is pushing prices higher.
Secondly,
The rise in wheat prices is largely due to global supply uncertainties caused by extreme weather events and supply chain issues. In particular, the ongoing conflict between Ukraine and Russia has disrupted grain exports from the Black Sea region, further contributing to the increase in wheat prices.
Market Volatility and Response Strategies
In this environment, grain-purchasing companies must strategically respond to price volatility and supply chain instability. For instance, employing hedging strategies to manage price risk and exploring diversification of supply chains to mitigate uncertainty are essential.
It is crucial for companies to continue responding swiftly to international market changes and develop strategies to minimize risks.
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