China: Oilseeds and Products Update
Strong exports from Brazil pushed China to a record 100.85 million metric tons (MMT) of soybeans imports in marketing year (MY) 22/23. Imports are forecast to reach similar levels in MY 23/24 on sustained demand from the feed sector. After reaching a record 5.3 MMT in MY 22/23, rapeseed imports are forecast to decline on high carry-in stocks. The People's Republic of China (PRC) efforts to incentivize domestic soybean cultivation through various local and national policies continues to support production, though lower prices for soybeans for food use may pose a challenge to sustaining higher volumes.

Brazil: Grain and Feed Update
Brazil has recently started planting its corn crop for the 2023/24 season. However, due to high production costs and lower expected earnings, profit margins are under pressure. As a result, Post predicts a decrease in planted area, with production for the next season estimated to drop from 135 MMT (MY 2022/23) to 130 MMT (MY 2023/24). In addition, the El Niño weather phenomenon is anticipated to continue having an impact on crops in the southern region of Brazil, particularly affecting wheat farms, which will likely result in lower yields. As such, wheat production for MY 2023/24 is predicted to decrease by 7 percent to 10.2 MMT. Meanwhile, rice market prices have started to rise while production costs are easing, making it more attractive for farmers to sow rice for the upcoming harvest. Post forecasts rice harvested area at 1.5 million hectares (ha) for MY 2023/34, a 2 percent increase over the previous season.