Tag Archives: agriculture

Brazil’s May soybean exports jump 33% in month

Ever since we wrote a paper about exporting soybeans, I’ve been following the contretemps between Brazil and the US regarding soybean exports. China is the largest importer of soybeans from these two countries. Since one is Northern and one is Southern Hemisphere, their harvest seasons differ. So in the past the prices switched back and forth as the harvest supplies soared in one country or another, and China bought around the same from each source. The US has areas where yields are large, is a bit closer, and the inland transport for the soybeans is good. Brazil has lots of land planted, overland transport to ports is challenged a bit, and the distance to China is greater.

But now we have ‘exogenous factors’ as the economists like to say. China is in a trade war with the US. So as the second article indicates, China’s government-owned processors are buying some American beans, whereas the private Chinese enterprises are buying more Brazilian beans. The result is that more beans are going to China from Brazil right now. The trade war’s uncertain vicissitudes may mean that Brazil’s sales will become significantly bigger, and China will only buy what it thinks it has to from the US. Geopolitically, it makes sense for China to support Brazil, a developing country with lots of financing needs and less influence in the world. Support might mean good opportunities for Chinese investment and influence on Brazil’s policies internationally.

The outlook is really unclear. We need to keep watching developments in soybean trade.

https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/052620-brazils-may-to-date-soybean-exports-jump-33-on-month-to-1224-mil-mt

https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/052520-china-buys-bulk-of-brazilian-soybeans-in-april-despite-us-china-trade-deal

Author Asim Anand

Quote

Coronavirus delays create Container shortages in Chicago for DDGS

Coronavirus issues, particularly in China, are creating real problems for Dried Distiller Grains (DDGS) shipments. The lack of inbound containers from China means that there are not enough containers to ship DDGS out of the US.

DDGS is a byproduct of ethanol production, and in this part of the Midwest US, there is much ethanol production.  It is some of the most productive corn land in the US.  The DDGS are primarily used as animal feed.  China imports DDGS as feed for pork in the older times. I’m not sure how much they are importing right now due to the tariff fight and the pork disease issue in China. China’s pig production is just recovering from that tragedy a year or so ago.

The article gives an indication of container rates North Asia to West Coast US. They are trending down to attract business. blanked sailings are also a feature of the current environment in container shipping from China.

It’s a mess!

screenshot SandP Global Platts

via Container shortages in Chicago impact DDGS on coronavirus delays | S&P Global Platts

New Paper Published

We just published an article in Research in Transportation Business and Management (RTBM). It’s called Fleet management for rail car transport of ethanol.

The “we” is Khalid Bachkar, Idrissu Aminu, Atif Osmani, and me.

The link here is good for 30 days; you can read for free. We hope you enjoy it.

http://communications.elsevier.com/r/?id=h5705da8d,2b49428c,2b736cdd&p1=authors.elsevier.com/a/1WANF7sdbMeO~B