April 22, 2013

South America's soy exports to China may drop on transport problems

Most likely because of transportation problems, China may not import as much soy from South America as had been expected.

This was stated by Todd Austin, analyst from the Grain Farmers of Ontario (GFO).

Austin says Oil World is reporting China may import 59 million tonnes in the 2012-13 season from South America, down from the 60 million forecast just three weeks ago.

In his weekly grain market commentary Austin said the Brazilians are now starting to move some of their soy to the country's southernmost port to avoid bottlenecks at other ports.

He said Egypt is also trying to cut how much wheat it imports this year. Egypt usually imports about 10 million tonnes a year.

This year the Egyptians say they will only buy four or five million tonnes, hoping to make up the rest from their own local production.

And on the corn front, Austin said early spring storms have apparently provided badly needed moisture to the dry soils in parts of the US Plains.

The GFO weekly commentary quotes a recent US climatology report as saying that moisture has reduced the area hardest hit by drought in key American farm states.