Miller Magazine Issue: 119 November 2019

100 MARKET ANALYSIS MILLER / NOVEMBER 2019 National Corn Ethanol Union (Unem), two facilities are in the final phases of construction and should be opera- tional by the end of next year in the cities of Sorriso (cen- tral Mato Grosso) and Campo Novo do Parecis (western Mato Grosso). Three more are scheduled to be built by the end of 2021 in Nova Marilandia and two in Nova Mu- tum (all three are in the mid-north region of Mato Gros- so). Corn ethanol production in the state increased by 66% from 2018 to 2019. In 2019, the state produced 1.1 billion liters of ethanol and that is expected to increase to 2 billion liters in 2020. The Mato Grosso Institute of Ag- ricultural Economics (Imea) estimates that the state will produce 32 million tons of corn in 2019/20 and that corn production will continue to increase in the years ahead. The National Corn Ethanol Union also expects corn- based ethanol production to continue increasing as well. Soybeans are still supported not only on the basis of China’s expectations of an increase in purchases of Amer- ican beans, but also from a growing palm. Malaysia’s soy- bean futures rose amid claims to cut production, despite India’s potential refusal to buy oil for political reasons. The Brazilian president, Jair Bolsonaro, was in Beijing last week to meet with Chinese President Xi Jinping and signed eight new commercial accords with most of the accords centering on agricultural products including pro- cessed meat, cottonseed meal, and renewable energy. Despite the announcement of the signing date of the agreement, 10/29/19 the futures markets remained calm: this is not the first time after such statements that the transaction was postponed. Another question – what will be with Chinese – Argentinian and Brazilian deals in case of China’s will come back to the USA. There was nothing to afraid this Halloween, but in a week after interesting goings-on go on. One by one in- stead of preparing to 17th of November tread deal signs between the USA and China in Chile, Beijeen Canadian, French and Denmark meat supply. IMHO, it looks like China does not need a deal with Washington. And the final accord was delaying the meeting until December. If we add record October Brazil soy export at 9.67MMT and just .97 MMT USA to China we can discuss just one question: could someone explain, why China needs USA beans? Or it’s just overtures? Couse ASF still on the floor and pigs even crossing the Russian border. Wheat which got support from government tenders this week became weaker: Russia still unsold, and Ar- gentinian crop is coming. But in long term wheat is opti- mistic as planting area reducing over the world. So let’s trade rapeseeds for next season: it’s more rea- sonable and understandable.