China - interest rates cut again

Recent concerns over China’s economic growth potential were intensified when its central bank cut interest rates once again last week in an effort to support its economy following COVID. Any reduction in Chinese demand for imports remains a concern for all markets.

Russia - record yields boost wheat production

Wheat production in Russia has been increased by 3.8Mt to 94.7Mt, by consultancy SovEcon. This is a result of record yields and an improved outlook for spring wheat. However, export demand is reported to be slower than expected with insurers and shippers remaining wary.

New Zealand - heavy rain hits dairy

Heavy rain and widespread floods have hampered the start of the dairy production season in New Zealand and is likely to result in lower than normal milk supply for August.

USA - higher beef production expected

Widespread herd liquidation caused by drought in the US is expected to raise production in the second half of 2022. Higher than expected placement in feedlots in late 2022 and early 2023 are expected to raise production next year.