Global Ag News for Aug 24th
Dry weather concerns; prices continue to rise in Brazil
Wheat prices overnight are down 1 3/4 in SRW, up 1 1/4 in HRW, up 3 in HRS; Corn is up 3 3/4; Soybeans up 15 1/2; Soymeal up $0.24; Soyoil up 0.52.
For the week so far wheat prices are up 4 in SRW, up 3 1/2 in HRW, up 6 1/2 in HRS; Corn is up 2 1/2; Soybeans up 18 1/4; Soymeal down $0.47; Soyoil up 2.47. For the month to date wheat prices are up 18 3/4 in SRW, up 34 1/2 in HRW, up 17 3/4 in HRS; Corn is down 6; Soybeans down 41; Soymeal down $3.80; Soyoil down 3.96.
Chinese Ag futures (JAN 22) Soybeans up 88 yuan ; Soymeal down 14; Soyoil up 38; Palm oil up 78; Corn up 8 — Malasyian Palm is down 16. Malaysian palm oil prices overnight were down 16 ringgit (-0.37%) at 4300 amid signs of increasing production in Malaysia and concern that a stronger currency will curb exports from the world’s second-biggest grower.
Midwest corn, soybean and winter wheat forecasts: West: Isolated to scattered showers through Friday. Temperatures above normal through Friday. East: Isolated showers through Thursday. Scattered showers Friday. Temperatures above normal through Friday. 6 to 10 day outlook: Scattered showers Saturday-Wednesday. Temperatures above normal Saturday-Sunday, near to above normal Monday-Wednesday.
The player sheet for Aug. 23 had funds: net buyers of 2,500 contracts of SRW wheat, sellers of 2,000 corn, buyers of 2,000 soybeans, sellers of 5,000 soymeal, and buyers of 6,500 soyoil.
Preliminary changes in futures Open Interest as of August 23 were: SRW Wheat up 2,615 contracts, HRW Wheat down 1,501, Corn down 2,600, Soybeans down 851, Soymeal up 1,615, Soyoil down 4,410.
There were no changes in registrations. Registration total: 0 SRW Wheat contracts; 0 Oats; 0 Corn; 0 Soybeans; 298 Soyoil; 34 Soymeal; 1,288 HRW Wheat.
- CORN SALE: The U.S. Department of Agriculture confirmed private sales of 458,600 tonnes of U.S. corn to Mexico for delivery in the 2021/22 marketing year that begins Sept. 1.
- WHEAT TENDER UPDATE: The lowest price offered in a tender from Pakistan to purchase 400,000 tonnes of wheat was believed to be $355.99 a tonne c&f
- WHEAT FLOUR TENDER: The state purchasing agency in Mauritius issued an international tender to buy 47,000 tonnes of wheat flour to be sourced from optional origins
- SOYBEAN TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp issued an international tender to purchase around 3,700 tonnes of soybeans free of genetically modified organisms.
- DURUM TENDER: Morocco’s state grains agency, ONICL, issued a tender to import around 363,000 tonnes of U.S.-origin durum wheat under a preferential tariff import quota. The deadline for submission of price offers is Aug. 24.
- WHEAT TENDER: Jordan’s state grain buyer issued a tender to buy 120,000 tonnes of milling wheat that can be sourced from optional origins.
- WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat.
USDA CROP PROGRESS: Corn Conditions 60% G/E, Soybeans 56%
Highlights from the report:
- Corn 60% G/E vs 62% last week, and 64% a year ago
- Corn dented 41% vs 22% last week, and 41% a year ago
- Corn dough 85% vs 73% last week, and 86% a year ago
- Corn mature 4% vs 5% a year ago
- Soybeans 56% G/E vs 57% last week, and 69% a year ago
- Soybeans blooming 97% G/E vs 94% last week, and 99% a year ago
- Soybean drop leaves 3% vs 4% a year ago
- Spring wheat harvest 77% G/E vs 58% last week, and 46% a year ago
- Cotton 71% G/E vs 67% last week, and 46% a year ago
- Sorghum 62% G/E vs 60% last week, and 54% a year ago
U.S. Inspected 725k Tons of Corn for Export, 214k of Soybean
In week ending Aug. 19, according to the USDA’s weekly inspections report.
- Soybeans: 214k tons vs 278k the previous wk, 1,223k a yr ago
- Wheat: 658k tons vs 561k the previous wk, 570k a yr ago
- Corn: 725k tons vs 782k the previous wk, 892k a yr ago
Brazil C-S Summer Corn Planting 4.1% Done on Aug.19: Agrural
Compares with 5.7% a year earlier, consulting firm AgRural says in emailed report.
- Farmers are still cautious about planting, given odds for more frosts, which could hurt growth
- Winter corn harvest in the Center-South region is 79% complete, vs 82% a year earlier, and 70% a week before
WHEAT/CEPEA: Dry weather concerns; prices continue to rise in BR
After the frosts that hit wheat crops in late July, currently, it is the lack of rainfall and the hot weather that are concerning agents in the Brazilian wheat market. Except for some areas in Rio Grande do Sul, the weather has been extremely dry, while many crops are developing and/or flowering. This scenario added to the increase in the import parity and high demand, majorly from the feed industry, are keeping wheat prices on the rise in Brazil.
French flour to bear extra costs from poor wheat quality -millers
A fall in the average quality of France’s soft wheat harvest this year will lead to an increase in flour prices linked to additional work for millers to sort good grains from poor ones, a senior member of French millers group ANMF said on Monday.
However, there should be no impact on total volume of flour produced in France this year, said Erick Roos, chairman of ANMF’s process commission and director general of Moulins Soufflet, one of Europe’s biggest millers.
Heavy summer rain in France, the European Union’s biggest grain producer, has slowed field work and led to low readings in some key milling criteria, although the harvest is still expected to rise well above last year’s poor crop in volume.
Crops Hurt by Heat in Southern Europe, Improved in West: MARS
Hotter-than-usual conditions in southern, eastern and northern European regions have had negative impacts on non-irrigated summer crops, the EU’s Monitoring Agricultural Resources unit wrote Monday in a report.
- The summer crop yield outlook improved for parts of western and north-central Europe thanks to mild temperatures and adequate water supply
- Still, frequent rains hampered the winter-crop harvest in some of these regions, leading to a slight reduction in the yield outlook for winter grains
- “Weather conditions in the EU, and the associated impacts on yield expectations have been quite contrasting. However, changes to crop yield forecasts at the EU level, are very limited”
Russian Wheat Yields Are So Far Lower Than Last Year: Ministry
Russian farmers harvested 19.9m hectares of wheat as of Aug. 23, versus about 18.8m hectares as of a similar time last year, according to data from the Agriculture Ministry’s analytical center.
- The average wheat yield is 3.13 tons/hectare, compared with 3.58 tons/hectare last year
Russian Domestic Wheat Price at Season Record Fuels Concerns
- August wheat price reaching its highest in at least a decade
- USDA, analysts are lowering their forecasts for annual harvestBy Yuliya Fedorinova and Anya Andrianova
Russian domestic wheat prices jumped in August to levels typically not seen this time of year, raising concerns about food price inflation and possible government reaction.
Wheat prices for the month are surging to the highest in at least a decade, contrary to the typical decline during this period as the new harvest flows in. That may be the result of farmers holding the grain back from the market because they’re wary of making bad deals under a recent export tax. The duty was meant to help stifle inflation, yet the annual rate is now 6.5%, the highest since 2016.
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