BRICS Grain Exchange? US Exports at Risk??

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0:00 US / Brazil / China
2:42 BRICS Grain Exchange?
5:19 Ethanol Production is STRONG
9:07 Argentina Weather
10:26 Flash Sales
Here’s a summary of the latest developments in international trade, agriculture, and ethanol production! 🌍🌾
🌐 US-Brazil Relations and Trade Concerns
The Biden administration is advising Brazil against joining China's Belt and Road Initiative (BRI). At the Bloomberg New Economy conference in São Paulo, Biden's trade negotiator emphasized the risks of such a partnership. While some Brazilian leaders view the BRI as an opportunity for new investments, others warn it could harm relations with the US and EU. Brazil's ag minister argues for joining the initiative to counter protectionist measures from the US and EU.
🌾 BRICS Grain Exchange Proposal
Russia is pushing for a BRICS grain exchange to stabilize trade among its member countries (Brazil, Russia, India, China, and South Africa). This exchange aims to protect against price volatility and could extend to trading other commodities like gas, metals, and oil. A new cross-border payment system among BRICS nations is also under consideration, which would bypass the US dollar for easier trade.
🌽 US Ethanol Production
US ethanol production reached its second-highest level for this time of year, with a weekly output of 1.08 million barrels per day. This figure is up 3.7% from the previous week and 4.4% year-over-year. Ethanol stocks are reported at 22.2 million barrels, reflecting a slight decrease from the prior week but an increase compared to last year. Implied gasoline demand has also seen an uptick of 4.3% over the last four weeks compared to the same period last year.
🌧️ Rainfall Benefits in Argentina
Argentina has received much-needed rainfall, with major farming areas seeing between 1 to 3.5 inches. This moisture is critical for the upcoming wheat harvest in November and will help resume delayed planting of corn and soybeans.
The Rosario Grain Exchange has revised its estimates, projecting the wheat crop at 19.5 million metric tons and corn production between 51 million to 52 million metric tons.
📦 Flash Sales in US Ag Exports
USDA reported significant flash sales on Wednesday:
130,000 metric tons (5 million bushels) of soybeans sold to China for delivery in the 2024/2025 marketing year.
100,000 metric tons (4 million bushels) of corn sold to unknown destinations for delivery during the same marketing year.
259,000 metric tons (10 million bushels) of soybeans sold to unknown destinations.
Conclusion
The global agricultural landscape is shifting with significant implications for trade dynamics, especially concerning US-Brazil relations and the potential impacts of the BRI. Meanwhile, US ethanol production is robust, and Argentina's rainfall is promising for upcoming crops. Flash sales in US ag exports indicate continued interest and demand, particularly from China, despite market uncertainties. 🌾📈