|
S Illinois | Funny how exports this week are a big deal but last week were or the week before we not. Sounds like cherry picking to me. Contrary to popular belief, week to week exports fluctuations mean little especially when it comes to the smaller quantities of shipments like meal and oil. Meal has a well shown history of weekly sales in the 150-200k per week in the first 4 months and then drops below 100k in mid May up to until new crop beans become available. You are picking up the normal slowdown, nothing more.
As to meal imports and cancellation, who realistically is going to ship all of this meal to the US or to the people we sell to. On a percentage basis of domestic use the US imports a smaller percentage of domestic meal usage than we do whole soybeans usage. The biggest worldwide meal producer, Argentina is facing problems with their beans and consequently the meal they will produce. Additionally our big meal export customers are not China, but rather Mexico, Canada, and the Caribbean nations. Those meal cancellations you picked up on likely via Ken Morrison, were to Canada, Mexico, and the Ecuador. Do you believe that this was based solely on the fact of the dollar gaining in strength or maybe a little position squaring? Also net is what is important despite the insistance that it is not. The only big US meal customers that would have any type of shipping advantage from SA would be the Phillipines and Thailand. | |
|
Bull Flag
