Tidbits & Bottom Line
Later this morning, we will send you Eugene's Weekly Basis Report.
If you read nothing else this morning, be sure you read his What You Should Have Noticed comments.
Bottom line: As of this morning, it looks like Monday’s market action will tell us whether to bail on old crop corn and beans. Last evening’s 6 to 10 days and 8 to 14 day forecasts predict much above normal temperatures east of the Rockies with mostly below normal rainfall.
In 2020, China imported a record large 99.74 million mts of soybeans. Here in 2023, the Chinese government has been buying soybeans aggressively to restock government supplies and privately owned crushers have been buying soybeans aggressively because the crush margins are so profitable. In fact, China’s 2023 year-to-date import pace is running ahead of 2020 and projects to easily exceed 100 million mts, which is what USDA had printed on its June S&D. However, in its July S&D, the USDA reduced China’s bean imports to 99 million. Despite China’s even more aggressive buying of soybeans since its July S&D, the USDA left China’s bean imports at 99 million mt on the August S&D.