Miller Magazine Issue: 129 September 2020

88 MARKET ANALYSIS MILLER / September 2020 ports. They could replace Australia due to politics ten- sions. Algeria will hold a tender for ~ 50km (2*25) barley on September 2 with bids valid until September 3, shipment from October 1 to October 15 to October 16-31. VEGOILS MARKET A subsidiary of China Xiangtai Food Co., Ltd., Chon- gqing Ji Mao Cang Feed Co., Ltd., has entered into an agreement to sell 12KMT soybean meal to the Zhen- jiang subsidiary of China Grain Reserve Corporation (Sinograin), according to World-Grain. China Xiangtai Food Co. Ltd., mainly focused on pork processing, re- cently acquired a 51% controlling interest in Chon- gqing Ji Mao Cang Feed Co., Ltd. (JMC). JMC, a private enterprise specializing in the sale of feed raw materials and offering feed mixture solutions for the expansion of the southwest China market, has more than 200 far- mer customers and nearly 100 customers in the feed industry. Brazilian media are reporting that the government may waive import duties on soybeans, corn and rice to combat rising local prices. The reports say the cur- rent taxes are 8% for corn and soybeans and 12% for rice. Brazil, the world's largest producer and exporter of soybeans, faced a shortage and high cost of beans between September and February due to active sales of future crops by farmers. Processors are ready to import American raw materials, the market estimates the im- port potential at 1 MMT per year. As of August 27, the United States exported 22.4 MMT of new crop soybeans, of which 12.5 MMT, or 56%, was sold to China, compared with 5.6 MMT this season, of which China bought 0.3 MMT, or 4.6%. Infographics - Benja- min Bodart The Ministry of Economy of Ukraine expects sunflower harvest at 14MMT, which added the foundation for the growth of prices for oil and meal. This season will see competition between the EU and China. MACRO In August, OPEC increased production by 550 thousand barrels per day, although it could be increased by 1.2 million barrels per day, say in ProFinance. Typically, monthly reports from OPEC and the International Energy Agency are released in the second week of each month. In an- ticipation of these reports, Bloomberg is conducting a survey of oil market experts from different countries, as well as reputable consulting firms, many of which, like Rystad Energy and JBC Energy, advise OPEC. Blo- omberg also takes into account the readings of its own system for tracking the movement of oil tankers, and also takes into account information from third-party experts such as Petro-Logistics. According to a recent survey by the agency, the pro- duction of the Cartel rose in August, which, in fact, was expected. However, the growth was almost 2 ti- mes less than allowed by the agreement in force since May. The fact is that Iraq and Nigeria, which had been fined in May, June and July, began to compensate for non-compliance with the limits by additional volume restrictions. Thus, in August, OPEC increased produc- tion by 550 thousand barrels per day to 23.94 barrels per day, according to the survey. At the same time, the terms of the deal implied the possibility of increasing production by 1.2 million barrels per day. Saudi Arabia - the flagship of OPEC - increased pro- duction by 410 thousand barrels per day to 8.86 million barrels per day. For this country, the production limit is 8.99 million barrels per day. The UAE and Kuwait also increased their production. These three countries in June voluntarily cut production by three additional 1 million barrels per day.