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3 Big Things Today, December 30, 2020


1. #Soybean #Futures #Decline in #Overnight #Trading

#Soybeans were lower overnight after port workers in #Argentina agreed to end a 20-day strike after an agreement was made with port management.

The strike left about 150 grain ships stranded, according to media reports that cited port officials. #Each ship’s demurrage cost was between $25,000 and $40,000 a day, S&P #Global said in a report, citing the director of the #Rosario #Stock #Exchange.

The #Ministry of #Labor hosted a meeting between port executives and labor representatives, according to the #Camara de la #Industria #Aceitera de la #Republica #Argentina, or CIARA.

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The organization said in a statement that there’s an agreement in place to lift the strike that has “paralyzed port terminals and the agro-industrial complex” in #Argentina.

#Argentina is expected by the U.S. #Department of #Agriculture to produce about 50 million metric tons of soybeans this year and export about 7 million tons. #Wheat output in the #South #American country is pegged at about 18 million metric tons with exports of about 12.5 million tons.

CIARA said in its report that #Argentina had become an “unreliable supplier” internationally due to the strike. #Workers will get a 35% wage increase and a bonus as part of the deal, CIARA said.

#Soybean futures for #January delivery fell 8¢ to $12.88 a bushel overnight on the #Chicago #Board of #Trade. #Soymeal lost $4.90 to $419.40 a short ton, and soy oil fell 0.4¢ to 41.35¢ a pound.

#Corn futures for #March delivery were down 2½¢ to $4.63½ a bushel overnight.

#Wheat futures for #March delivery dropped 1¾¢ to $6.16¾ a bushel, while #Kansas #City futures lost 2¢ to $5.83 a bushel.

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2. #China #Likely to #Increase #Domestic #Production, #Boost #Imports of #Corn

#Chinese demand for corn is only increasing and imports into the #Asian country from the U.S. likely will improve in the future, #University of #Illinois economists said in a report.

#China was self-sufficient in corn production until 2015, then relied on imports from #Ukraine until 2019.

#Poor output last year in the #Eastern #European country led #China to seek U.S. corn supplies, said #Scott #Irwin and #Joe #Janzen with the #Department of #Agricultural and #Consumer #Economics #Department at the #University of #Illinois.

#It’s likely #China will increase domestic corn production, boost imports from overseas sellers, and dig into its stockpiles this year, the report said.

“If #Ukrainian production returns to normal and/or #Brazilian corn is price-competitive with U.S. export values – both of which appear likely – U.S. exports of corn to #China are likely to be lower in 2021/22 than what is projected for the current 2020/21 marketing year,” the economists said. “Even so, U.S. corn exports to #China will likely be higher than in previous years.”

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#China may impose tariffs and import quotas which, along with mediation of grain trading by #Chinese government-owned firms, may be wildcards moving forward, #Irwin and #Janzen said in their report.

The economists said they now expect U.S. corn acreage to fall by 1.1 million acres to 90.9 million next year and soybean area to jump by 7.7 million acres to 90.8 million.

#Ending stockpiles will have a “difficult time” increasing much in the 2020-2021 marketing year, the report said.

“For stocks to be replenished to more normal levels, either prices will have to rise further to reduce the size of the demand base, or good weather will be needed first in #South #America this winter and then the U.S. in the summer of 2021,” the economists said. “On top of all this, there is the timing of the expected economic recovery as COVID-19 vaccination proceeds.   The roller-coaster ride in the grain markets is unlikely to end anytime soon.”

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3. #Winter #Weather #Moves #Into #Wisconsin, #Illinois, and #Michigan

#Winter weather is moving east and is now sliding into #Wisconsin and northern #Illinois across the lake into #Michigan today, according to the #National #Weather #Service.

A winter storm warning is in effect until 9 a.m. in northern #Illinois as the area is seeing freezing drizzle and “lingering poor travel conditions,” the NWS said in a report.

#In southern #Wisconsin, light snow is falling along with freezing drizzle this morning. #That’s left a light glaze of ice on the road, making travel hazardous.

#Almost the entire state of #Michigan is under a winter weather advisory through early afternoon, the agency said.

#As much as 3 inches of snow along with a glaze of ice are expected by about 1 p.m. local time. #Road conditions are expected to be dangerous.

The snow and freezing rain are expected to transition into rainfall as temperatures climb this morning, the NWS said.



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