North Dakota Soybeans Under $9! No China Demand = Big Trouble

About this Video

• Video Title: North Dakota Soybeans Under $9! No China Demand = Big Trouble
• Channel: Grain Markets and Other Stuff
• Speakers: McKenzie (presumably, though not explicitly named)
• Duration: 00:13:51

Introduction

This video discusses the current state of grain markets, focusing on the significant challenges faced by US soybean farmers, particularly in North Dakota. The main issue highlighted is the lack of Chinese demand for US soybeans, leading to historically low basis levels and substantial financial losses for farmers. The video also touches on corn and wheat markets, crop ratings, and export shipments.

Key Takeaways

1. Low Soybean Prices in North Dakota: Cash soybean prices in parts of North Dakota are near or below $9 per bushel due to the absence of Chinese demand. This is leading to significant losses for farmers.
2. China's Reduced Soybean Purchases: China has made zero new crop US soybean purchases, a stark contrast to previous years where purchases reached millions of metric tons. This lack of demand is severely impacting US soybean farmers.
3. Challenges Facing US Farmers: The video highlights the broader challenges faced by US farmers, including poor markets and high input costs, exacerbated by the trade war with China. A recent Wall Street Journal article emphasizes these struggles.
4. Positive Corn Export Sales: Despite a challenging soybean market, US corn export sales have been strong, potentially reaching record levels due to Brazil's non-competitiveness in the current market.
5. Crop Ratings and Harvest: The video presents US crop condition ratings for corn, soybeans, and wheat, noting that while ratings are generally good, there are concerns that the USDA yield estimates may be too high, particularly for corn. Wheat harvest is progressing.