In the Market
shown a willingness to disrupt the patterns of past behavior and look for new models, and we’re willing to entertain next steps forward.”
The exchange added that all initial margin rates are 110 percent of these levels. These changes took affect Wednesday.
As of December 8, 2017
Lower antibiotic use in U.S.
Canada begin efforts for trade with China
Ag trade surplus down
The U.S. exported $13.15 billion worth of agriculture goods in October, while it imported $10.436 billion worth of such products, resulting in an ag trade surplus of $2.714 billion for the month, according to the Economic Research Service’s (ERS) ag trade update released yesterday. To kick off fiscal year (FY) 2018, the trade balance is down $2.075 billion from the start of FY 2017. China’s bean imports up
China imported an impressive 8.68 MMT of soybeans in November, according to preliminary customs data. This represented a 48-percent surge from October and an 11 percent gain from year-ago levels as backlogged shipments from the U.S. finally arrived. So far this year, China has imported 85.99 MMT of soybeans, an 11.07 MMT (14.8 percent) increase yearago and already eclipsing 2016’s total import figure. Crushers are enjoying strong profit margins and China’s efforts to replace small farms with massive facilities with industrial feed needs is keeping feed needs high. Demand for the Lunar New Year holiday is expected to keep China’s bean imports strong in December, with analysts calling for shipments of 9 MMT. Canada/U.S. trade deal possible
Canadian Prime Minister Justin Trudeau said he would consider oneon-one talks with the U.S. on trade if negotiations to update the North American Free Trade Agreement (NAFTA) falter. “We will always look at different opportunities,” Trudeau said in response to a question about a two-way U.S. trade deal at the Fortune Global Forum in China. “We’re ready for anything, when things come forward. The new administration has
U.S. sales and distribution of antibiotics used in food-producing animals fell 10 percent from 2015 to 2016, according to a report from the U.S. Food and Drug Administration (FDA) released yesterday. Food and consumer health groups report this was the first drop since FDA started collecting the data in 2009. Much of this decline was driven by changes in consumer preferences that translated to efforts by food companies like McDonald’s and Tyson Foods to reduce antibiotic use. This came before new FDA rules limiting the use of antibiotics important to human medicine absent a veterinary prescription took effect. FAO reports slight dip in food prices
Global food prices dipped around 0.5 percent in November from the month prior, according to the Food and Agriculture Organization (FAO) of the United Nation’s Food Price Index that came in at 175.8 points. This was up 4 points (2.3 percent) from year-ago levels. FAO explains that “a sharp rise in sugar and vegetable oil quotations was largely offset by a fall in dairy values while international prices of cereals and meat products remained relatively muted.” FAO’s global cereal production forecast now stands at an all-time high of 2.627 billion MT for 2017, up 16.8 MMT from year-ago, thanks to a sharp hike of 13.4 MMT this month. The increase was mostly driven by higher corn crop numbers from the U.S., though FAO also raised its global wheat production estimate to 754.8 MMT. CME lowers maintenance margins
CME Group lowered its maintenance margin for corn, soybeans and wheat as follows: • Corn: Down $100 to $650 per contract. • Soybeans: Down $250 to $1,650 per contract. • Wheat: Down $150 to $950 per contract.
“While in Beijing, Premier Li and I had discussions on a range of issues, from growing trade and investment, to combating climate change, to the importance of free expression,” Canadian Prime Minister Justin Trudeau said in a statement released by the Canadian government. “I look forward to continuing discussions towards a comprehensive trade agreement, which will open up greater opportunities for people on both sides of the Pacific.” The proposed free trade agreement was one of the main topics when Trudeau met with Chinese Premier Li Keqiang on Monday in Beijing. However, no official statement was made regarding the beginning of talks about a new trade agreement. A Canada-China trade agreement would take years to unfold – the ChinaAustralia Free Trade agreement came into force only after a decade of talks. Arkansas Farmer elected Secretary of USB
Jim Carroll, a soybean farmer from Brinkley, was elected secretary of the United Soybean Board (USB). The soy checkoff, which works to maximize profit opportunities for U.S. soybean farmers through national investments, continues focusing on the areas of meal, oil and sustainability to increase farmer profit opportunitie
CONTACT • Matt King 501-228-1297, matt.king@arfb.com.