Africa accounts for only 4% of global wheat productionAugust 8, 2018
China has expanded the use of low protein animal feed formulasAugust 8, 2018
- There are interesting developments in the Chinese animal feed industry. Recent reports from the International Grains Council suggest that the country has expanded the use of low protein animal feed formulas. This could potentially reduce the soybean imports by 5 million tonnes in the 2018/19 season. Moreover, China’s imports of canola and sunflower meal are expected to increase this season and potentially substitute 6 million tonnes of soybean meal.
- This comes on the back of the US-China trade dispute which led to the introduction of tariffs on soybean imports. Earlier this year, China’s 2018/19 soybean imports were expected to reach a record level of 103 million tonnes. A number of agencies and analysts have revised their forecasts down since the introduction of tariffs. Yesterday, China National Grain and Oils Information Centre placed its 2018/19 import estimate at 94 million tonnes, which is 9 percent lower than the estimates presented earlier in the year and a percentage point lower than the previous season. This will be offset by the aforementioned alternative protein sources.
- Elsewhere, the unfavourable weather conditions experienced in parts of the US Midwest in the past couple of weeks have negatively affected the crop. In the week of 05 August 2018, about 67 percent of the US soybean was rated good or excellent, down by 3 percentage points from the previous week’s rating. There is, however, progress in terms of growth, with 92 percent of the crop already blooming, which is a 6 percentage points improvement from the previous week.
- On the domestic front, the focus today will be on the producer deliveries data for the week of 03 August 2018 which is due for release at midday. The producer deliveries for the week of 27 July 2018 amounted to 2 426 tonnes. This placed South Africa’s 2017/18 soybean deliveries at 1.5 million tonnes, which equates to 95 percent of the expected harvest of 1.6 million tonnes.
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