DDGS Exports to China: Traders Navigate New Requirements; Other Countries Find Buying Opportunities

China DDGS

In June, traders received word of significant new restrictions on imports of distiller’s dried grains with solubles (DDGS) into China. While a formal statement from the government in China was not forthcoming, conversations with officials in China indicated that China would begin to more strictly test incoming shipments for the presence of biotech events not yet approved in China. It was also reported that China was considering a moratorium on new DDGS import permits, although existing permits would continue to be valid.

Railroad Delays Interrupt US Grains Shipments in the Northern Plains

In spite of a record corn crop, some American grain farmers are struggling to get their crops to market due to railroad delays. Farmers in states such as North Dakota, South Dakota and Montana are sitting on millions of tons of grains, waiting for rail cars that are over a month late to arrive and haul their crops to grain elevators and ports in the Pacific Northwest.

USGC Launches Tanzania Food for Progress Program to Promote Poultry Industry

Tanzania

This spring, the U.S. Grains Council launched the Tanzanian Food for Progress program, building on its success in other livestock and feed improvement programs throughout the world. The program has three goals:
• Promote quality feed formulations for poultry
• Develop self-sufficient industry associations for poultry producers and feed manufacturers
• Improve broiler (poultry raised for meat) and layer (poultry raised for eggs) production through training seminars

North Africa and Egypt Import US Corn Because of Good Prices and Strong

Major North African grains buyers have begun importing U.S. corn again thanks to better prices and facilitated by strong relationships maintained through the lean years with the U.S. Grains Council. After virtually no sales in the previous year, Egypt, Morocco and Tunisia purchased 2.1 million metric tons (82.7 million bushels) of corn this marketing year from September 2013 to May 2014.

US Corn Planting Catches Up Thanks to Warmer Weather

Through April and early May, the United States saw planting delays in major corn-growing states because of a cool, wet spring. But, thanks to warmer weather over the last few weeks, farmers have made up for lost time and caught up to the five-year average. While a few of the northernmost states struggled with lingering weather, overall, planting progress in the United States has rebounded.

Cleaning Up a Nationwide PED Virus

A recent loss of piglets infected with Porcine Epidemic Diarrhea virus (PEDv) has impacted U.S. hog farmers in 25 states. Globally, pork supplies are under pressure with limited production and increased prices as PEDv spreads in Mexico, Japan and South Korea. As the world’s largest producer of pork, China will not face these pressures due to sow surplus and subsequent liquidation, helping drive prices down.

Illinois Planting Progress: A Late Start, but Catching Up Quickly

A cold, wet spring delayed planting through much of the central U.S. corn production areas. However, the arrival of better weather and access to state-of-the-art planting equipment has made it possible for farmers to play “catch-up” from the late start.

It is no different for Lou Lamoreux, a farmer in northwestern Illinois who has 1,800 acres of farmland. His land, which will be planted in 1,000 acres of corn, 350 acres of soybean and 450 acres split between wheat, alfalfa and open pasture this year, continued to receive rain and chilly weather until the first week of May.

As El Niño Predictions Roll In, Grains Markets Anticipate Stormy Prices

With warming surface temperatures and light winds in the Pacific Ocean, scientists are predicting a return of the weather system known as El Niño. Characterized by heavy rains in some parts of the world and drought in others, the extreme weather conditions El Niño typically delivers have a strong impact on grains market production and pricing.

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