This week?s report was very mild and, frankly, quite boring. Soybeans sales came withing expectations, and new crop corn did as well. Old crop corn sales are becoming, well, old at this point, as evidenced by the fact that they set a marketing year low this past week. Allendale commodity broker Greg McBride said those old crop corn numbers are a little concerning for this time of year.
With the news of China?s intent to import Brazilian corn this year, it makes sense to think that we?d see lower export numbers for corn. However, it?s important to remember that these numbers come from last Thursday, so that news isn?t factored in here yet. Additionally, McBride said that China is mostly trying to replace Ukrainian corn since they generally don?t buy much corn from the U.S, so their deal with Brazil likely won?t have a huge effect on our corn exports anyways.
While China?s deal with Brazil won?t necessarily have a direct impact on U.S. corn exports, it does open up some increased U.S. exports to other countries. McBride said this is evidenced by the fact that the Biden administration is pushing the Indo Pacific Economic Framework, which would increase exports to the included countries.
McBride also provided some advice for Iowa producers and drew attention specifically to the possible recession we could see this year.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
