ADM says China will need to import an additional 2 MMT of soybeans to counter canola losses

( )

On an earnings call today, Archer Daniels Midland CEO Juan Luciano said the world lost 15 MMT of crop production due to bad weather over the past two to three weeks, drawing specific attention to the drought’s toll on Canada’s canola crop. Drought and heat in Canada’s Southern Prairies and the U.S. Northern Plains have sliced canola production potential, despite what official U.S. and Canadian production forecasts signal. To offset the gap in canola supplies, Luciano commented that China will need to import an additional 2 MMT of soybeans.

Chinese livestock producers are currently feeding “a lot of wheat” given price differentials, suppressing demand for soybean meal, Luciano acknowledged. But he also said he expects Chinese producers to shift back to feeding livestock more soymeal over time, translating to a rise in soybean imports. Luciano expects ADM’s core ag services and oilseeds unit to boost profits this year, citing strong global demand for vegetable oil and high North American crush margins.

Those high crush margins paired with strong exports of corn to China helped shoot ADM’s third quarter profits 52% higher. ADM says high Chinese prices have driven prices to record levels, lifting domestic production and likely tempering export demand moving forward.

 

Latest News

After the Bell | September 21, 2021

After the Bell | September 21, 2021 Corn ends lower as USDA rating improves and harvest picks up, wheat lower, soybeans higher.

ASF confirmed in Haiti as thousands of migrants swarm the U.S. Border

The presence of the virus in the Americas paired with a surge in Haitian migrants at our southern border heightens concern the highly contagious disease could make its way to the U.S.

First Thing Today Audio | September 21, 2021

Experts believe a bailout is likely for the beleaguered Chinese real estate firm, the Biden administration reopens international travel and the pork product market takes a dive...

Legislative Crisis: Dems Link Debt Limit to Funding Bill Amid GOP Senate Hurdle

OECD boosts global inflation forecasts | Congestion mounts at Calif. Ports | U.S./U.K. trade

Ahead of the Open | September 21, 2021

Ahead of the Open | September 21, 2021 Corn futures seen lower after USDA crop ratings improve and harvest accelerates, soybeans firmer.

First Thing Today | Sept. 21, 2021

Cordonnier warns his U.S. corn & soybean yield forecasts may fall. Gulf terminals slowly coming back online. Inflation will continue to rise over the next two years. Cattle hold up well in the fact of economic jitters.