(Bloomberg) -- Chinese demand for sugar is finally showing signs of life after Beijing ended massive import tariffs.Brazil, the largest exporter of the sweetener, has scheduled the shipment of 816,823 metric tons to the Asian nation in the coming weeks, according to port lineup data from consulting firm Datagro dated Aug. 10.That’s 31% of all sugar Brazilian ports are expected to ship in that period. If exports continue at the same pace, China would resume its place as Brazil’s top sugar buyer.The number of China-bound vessels awaiting loading in Brazil has increased every day and recent new orders suggest the lineup will remain at high levels, according to Paulo Roberto de Souza, head of top sugar trader Alvean.“China’s change in the import tariffs, opening things up, would point to a desire to potentially rebuild stocks to some degree,” said Michael McDougall, managing director at Paragon Global Markets.Chinese purchases and expectations of more to come have helped raw sugar futures in New York to rebound about 35% from a late-April low. Authorities in China may allow an additional 2.1 million tons of imports in the coming months, said Datagro President Plinio Nastari.“The rise in corn prices internally to their highest level in five years might impact consumption of alternative sweeteners as well, pushing more consumption to sugar as a result,” McDougall said.Alvean expects China to import from all destinations above 5 million tons of raw and white sugar this year. Only considering the raw sugar, it is a 50% jump from last year. About 80% of the raw product may come from Brazil, de Souza said.This year through July, Brazil exported 1.43 million tons to the Asian nation, surpassing the volume shipped in all of 2019, according to data from Brazilian Trade Ministry.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The U.S. Department of Agriculture on Wednesday lifted its estimates for domestic wheat and corn production for the 2020/2021 marketing year. The government agency, in its latest monthly World Agricultural Supply and Demand Estimates report, raised its expectations for U.S. wheat production by 14 million bushels to 1.8 billion bushels. However, it also lowered its estimate for U.S. wheat imports by 10 million bushels this month to 130 million bushels and reduced expectations for wheat ending stocks by 17 million bushels to 925 million. "If realized, these will be the lowest wheat ending stocks in 6 years," the report said. U.S. corn production, meanwhile, is forecast at 15.3 billion bushels, up 278 million from the July projection. Corn yields are forecast at a record 181.8 bushels per acre, which is within market expectations, John Payne, senior futures and options broker with Daniels Trading, told MarketWatch. The "big question" will be what did the recent wind storm, that ravaged Iowa and northern Illinois earlier this week, do to the corn yield, he said, adding that the impact is not seen in this report. In Wednesday dealings, September wheat was down 5 1/4 cents, or 1.1%, at $4.89 3/4 a bushel. September corn traded at $3.12 1/4 a bushel, up 3/4 cent, or 0.2%.
Shares of Pacific Ethanol (NASDAQ:PEIX) moved higher by 38.29% in after-market trading after the company reported Q2 results.Quarterly Results Earnings per share rose 258.82% over the past year to $0.27, which beat the estimate of ($0.20).Revenue of $212,074,000 declined by 38.76% year over year, which beat the estimate of $174,200,000.Guidance Pacific Ethanol hasn't issued any earnings guidance for the time being.View more earnings on PEIXRevenue guidance hasn't been issued by the company for now.Price Action 52-week high: $3.30Company's 52-week low was at $0.22Price action over last quarter: Up 796.90%Company Description Pacific Ethanol Inc is a producer and marketer of renewable fuels. It owns and operates several ethanol production facilities distributed across the Western and Midwestern United States. The company operates across two segments: production and marketing. Its production segment includes the production and sale of ethanol and co-products, such as corn oil, distillers grains, and corn gluten meal. Its marketing segment includes the marketing, distribution, and trading of ethanol. The majority of companywide revenue comes from the production and sale of ethanol, with co-products accounting for a smaller portion. Pacific Ethanol's customers are mainly integrated oil companies and gasoline marketers that blend ethanol into their gasoline.See more from Benzinga * Stocks That Hit 52-Week Highs On Tuesday * Earnings Scheduled For August 11, 2020 * Stocks That Hit 52-Week Highs On Thursday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.