China aims to bolster food security
China announced at their 2023 National People’s congress that they will aim to increase grain production and storage capacity to ensure food security in the future. They aim to increase grain production by 50 MMT to over 650 MMT total. They will likely lean into production technology for this increase. This combined with more exports out of Brazil does not bode well for US exports to China going forward but time will tell. We know that China wants to move away from as many imports as possible. Argentina weather is a little wetter to start the week but will only narrow stress from 75 to 60%. We are starting to hear a bean crop of 30 MMT tons or lower for Argentina which is keeping the old crop soybean and meal market propped up. Brazil is still moving at a slower pace but will finish with a monster crop either way. For today, we will watch 6.30 & 15.06 for support and 6.41 & 15.22 for resistance.