China Cancels Beans from the United States
The USAD announced this morning that China canceled 245,000 MT of old crop beans from the United States. While the Bears have been hyping about China cancelations for a long time this was a minor amount. The market seems to feel the same way because at this point beans are only down ten to twelve cents a bushel at this point. From the lows of about a month ago beans have rallied around two dollars a bushel. So, what incentive does China have to cancel beans when they bought them a while ago at much cheaper prices???? Corn is just a little below unchanged after a nice rally the last couple weeks. It wasn’t long ago cash corn was about four dollars a bushel. Now cash is about four fifty. Certainly the Ukraine and Russia situation is providing some concern. The Ukraine exports a lot of wheat and corn onto the world market. If this becomes a “shooting” war who knows what the implications will be. I read that Europe gets most of their natural gas and a lot of crude oil from Russia, and the pipelines run through the Ukraine. Than, looking into the future, with political unrest will the Ukraine be able to finance and plant a crop?