OIL EXTRACTION PLANT in Mexico policy and counterattack

Posted 2020-09-18

OIL EXTRACTION PLANT in Mexico policy and counterattack: 

Recently, the Trump government claims to impose high tariffs on OIL EXTRACTION PLANT imported from Mexico. As a counterattack, Mexico has begun to show more interest in agricultural products in South America as a major source of imports for agricultural products. In 2016, Brazil exported only 54,000 tonnes of maize to Mexico, a figure that is expected to grow significantly in 2017, and the increase in maize export volume in Mato Grossoso will be the largest exporter of 77% of Brazilian maize exports Local farmers are profitable.

 

Although the cost of imports of soybeans and maize from South America is higher than that of the United States, the OIL EXTRACTION PLANT export demand for US agricultural products will inevitably be affected if Mexico is countering to US measures to increase trade import tariffs, including OIL EXTRACTION PLANT commodity prices for US soybean and US corn Will fall under pressure.

 

Brazil‘s consultative agency AgRural‘s latest report shows that Brazilian soybeans OIL EXTRACTION PLANT have finished harvesting by 26 percent for the year ended February 16, compared with 23 percent for the same period last year and 18 percent for the five-year average. Although Brazil‘s soybean OIL EXTRACTION PLANT harvest this year faster than in previous years, but farmers are not eager to sell, 2017 Brazilian soybean pre-sale progress of about 38%.

 

On the one hand, as the Brazilian OIL EXTRACTION PLANT currency continued to strengthen, the annual average appreciation has reached 21%. In the dollar under the premise of the local farmers to sell soybeans OIL EXTRACTION PLANT to reduce the profits, so OIL EXTRACTION PLANT sales enthusiasm has not been boosted. On the other hand, the current US soybean prices due to strong support of Chinese buyers to obtain support, but the market for Trump follow-up trade policy differences, China‘s demand for US beans or difficult to sustain. Once China reduces the US soybean OIL EXTRACTION PLANT import share, Brazilian soybean will become the first choice for Chinese buyers. Therefore, the Brazilian farmers want to hoard some soybeans to sell high prices is not difficult to understand.

 

In addition, this year, Brazil in addition to harvest OIL EXTRACTION PLANT progress faster than in previous years, export rhythm is also far ahead. According to data released by the shipping company, Brazil‘s soybean OIL EXTRACTION PLANT shipments have reached 3.8 million tonnes since February, and another 3 million tonnes have been scheduled for shipment. If the final shipment can be carried out, Brazil‘s soybean OIL EXTRACTION PLANT shipments in February will be 2.9 million tons higher than the same period last year. As the main producing areas Mato Grosso state early harvest, and global demand growth, Brazil‘s export this year than in previous years ahead of a month or so. Which will dramatically increase the US soybean OIL EXTRACTION PLANT in the export market on the competitive pressure on its price pressure.

 

As the South American OIL EXTRACTION PLANT high yield is expected to continue to strengthen, the US soybean has three consecutive trading days down. Domestic soybean meal prices affected by this to maintain wide oscillation, the spot market, most of the cautious attitude, the basic procurement with the downstream manufacturers with the use of the spot demand is not much boost.

 

In the case of a relatively clear pattern of bad OIL EXTRACTION PLANT conditions, the market will be more sensitive to some uncertain information response. Among them, the Trump trade policy may have an impact on the price of domestic beans. The most important supporting factor in the current US soybean prices is the continuous demand of China‘s procurement, but the Sino-US trade relations unpredictable, once the price support power changes, as the main terminal goods of the US soybean OIL EXTRACTION PLANT, the domestic soybean meal price trend will appear Large variable.

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