1. China oilseed production lowered, soybean imports unchanged - attache
Production of oilseeds in China is forecast to decline by almost 3.3 million metric tons in the 2015/2016 crop year (Oct-Nov) to 53.74 million, UDA's attache said.
Much of the drop will be due to expected lower cottonseed output, but soybeans also should be down with USDA's attache forecasting 11 million metric tons that year versus USDA's current forecast of 11.5 million.
The expected reduction was attributed the government lowering its support policy for the crops.
"The government's unchanged target price for the four northeast provinces is widely considered to be 'low and not attractive' for farmers in the region. As a result, farmers in regions where there is a choice to grow other crops, switched and increased the acreage devoted to grain crops," the report said.
However, the attache expects China imports to remain unchanged that year at 77.5 million tons for soybeans and 4.5 million for rapeseed.
2. Good weather helps Russia, Ukraine and European wheat
USDA this week raised its 2015/2016 wheat production estimate for Russia by 1.5 million metric tons to 55 million and raised Ukraine's by 1.0 million to 23 million tons as spring rain helped those crops.
USDA raised Europe's crop by 400,000 tons to 150.68 million because of good growing conditions in the United Kingdom and France.
Global Hotspots 6/5: South American soy crops keep getting bigger
Global Hotspots 5/29: Russian wheat needs rain
In addition, U.S. wheat production was raised to 57.72 million from its May forecast of 56.81 million as rain likely aided the winter wheat.
Those changes contributed to a larger world production forecast of 721.55 million tons from the May forecast of 718.93 million.
3. Bird flu losses have Dutch egg producers wanting to serve U.S. market
The avian influenza outbreak in the United States has Dutch egg producers planning to export eggs here.
"As a consequence of the equivalency, the Dutch exporters may be able to take advantage of the potential shortage of egg products in the United States," a USDA attache report said. "Due to the increased demand from the United States, Dutch processors are reportedly producing at a high level."
Four egg producers in the Netherlands have been approved by USDA to ship eggs to the United States. Currently the processors are determining their potential to export.
"On June 1, the FSIS published the list of four processors which are eligible to export. The only obstacle for resuming the trade is the absence of a Health Certificate. A new model certificate will be made available in the short term," USDA said.