Global Ag News for June 17
TODAY—- EXPORT SALES
Wheat prices overnight are down 7 3/4 in SRW, down 9 in HRW, down 1 1/4 in HRS; Corn is down 14; Soybeans down 20 1/4; Soymeal down $0.21; Soyoil down 1.47.
For the week so far wheat prices are down 27 3/4 in SRW, down 35 1/2 in HRW, down 5 3/4 in HRS; Corn is down 51 1/4; Soybeans down 115 1/2; Soymeal down $1.45; Soyoil down 7.38.
For the month to date wheat prices are down 9 1/4 in SRW, down 10 1/4 in HRW, up 31 3/4 in HRS; Corn is up 13; Soybeans down 49 3/4; Soymeal down $12.50; Soyoil down 2.43.
Chinese Ag futures (SEP 21) Soybeans up 23 yuan ; Soymeal down 23; Soyoil down 136; Palm oil down 124; Corn down 4 — Malasyian Palm is down 43. Malaysian palm oil prices overnight were down 43 ringgit (-1.26%) at 3361 fluctuating between gains and losses influenced by the production outlook in the world’s top growers, a drop in soybean oil and India’s move to cut its benchmark import prices.
Midwest corn, soybean and winter wheat forecasts: West: Isolated to scattered showers Wednesday night-Thursday, south Friday-Saturday. Scattered showers Sunday. Temperatures above normal through Friday, near to above normal Saturday-Sunday. East: Mostly dry Wednesday. Scattered showers Thursday night-Friday, south Saturday. Scattered showers Sunday. Temperatures near to below normal through Thursday, above normal Friday-Sunday. 6 to 10 day outlook: Isolated to scattered showers Monday-Friday. Temperatures below normal west and near to above normal east Monday, near to below normal Tuesday-Friday.
The player sheet for 6/16 had funds: net buyers of 1,000 contracts of SRW wheat, sellers of 2,500 corn, sellers of 11,000 soybeans, buyers of 4,500 soymeal, and sellers of 15,000 soyoil.
Preliminary changes in futures Open Interest as of June 16 were: SRW Wheat down 7,424 contracts, HRW Wheat down 2,348, Corn down 39, Soybeans down 287, Soymeal down 2,676, Soyoil down 6,405.
There were no changes in registrations. Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 13 Soybeans; 868 Soyoil; 442 Soymeal; 1,249 HRW Wheat.
- CORN SALE: The Korea Feed Association (KFA) purchased an estimated 60,000 tonnes of corn expected to be sourced from South America in a private deal on Tuesday without an international tender being issued.
- CORN SALE: The U.S. Department of Agriculture reported private sales of 153,416 tonnes of U.S. corn to unknown destinations for shipment in the 2021/22 marketing year.
- WHEAT TENDER: Iranian state agency the Government Trading Corporation (GTC) has issued an international tender to purchase about 60,000 tonnes of milling wheat.
- FAILED FEED WHEAT, BARLEY TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said it received no offers for feed-quality wheat or barley in a simultaneous buy and sell (SBS) auction that closed late on Wednesday.
- WHEAT TENDER: Japan Purchases 207,472 Tons of Milling Wheat in line with its previously announced purchasing plan.
- WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat
- WHEAT TENDER: Importers in the Philippines are tendering to purchase a total of around 205,000 tonnes of milling wheat and animal feed wheat.
- WHEAT TENDER: Jordan’s state grain buyer issued international tenders to buy a total 120,000 tonnes of milling wheat which can be sourced from optional origins
GRAIN EXPORT SURVEY: Corn, Soy, Wheat Sales Before USDA Report
- Corn est. range 275k – 800k tons, with avg of 520k
- Soybean est. range 50k – 400k tons, with avg of 233k
DOE: U.S. Ethanol Stocks Rise 3.2% to 20.602M Bbl
According to the U.S. Department of Energy’s weekly petroleum report.
- Analysts were expecting 20.149 mln bbl
- Plant production at 1.025m b/d, compared to survey avg of 1.063m
Farm-State Democrats Warn EPA on Oil Refiner Biofuel Exemptions
Excusing oil refiners from biofuel-blending rules would lead to an increase in greenhouse gases and put U.S. climate policy goals in jeopardy, 15 Democrat lawmakers tell EPA Administrator Michael Regan and White House National Economic Council Director Brian Deese in letter.
- Reports that the Biden administration is considering exemptions under the Renewable Fuel Standard program are of “significant concern,” says June 16 letter led by Sen. Amy Klobuchar of Minn., Rep. Cheri Bustos of Ill.
- EPA should issue long-delayed 2021 and 2022 proposals with “strong blending targets” and respond to a 2017 court ruling to “reinstate 500 million gallons of blending requirements inappropriately waived from the 2016 blending targets”
Edible oil prices down up to 20% in certain categories, says govt
Prices of edible oil are showing a declining trend across a wide array of oils, the Food and Consumer Affairs Ministry said on Wednesday.
As per the data from the Department of Consumer Affairs, the prices of edible oils are now coming down over the past month, and in some cases, the decline is by as much as nearly 20 per cent, as shown in prices in Mumbai.
It said the price of palm oil was Rs 142 per kg on May 7 but has come down to Rs 115 per kg, a drop of 19 per cent, and of sunflower oil, which was Rs 188 per kg on May 5, is now at Rs 157 per kg, a drop of 16 per cent.
The price of soya oil was Rs 162 per kg on May 20, but has dropped 15 per cent to Rs 138 per kg in Mumbai, while mustard oil, which was Rs 175 per kg on May 16, is now down to Rs 157 per kg, a drop of nearly 10 per cent, and groundnut oil at Rs 190 per kg on May 14 has now down to Rs 174 per kg, a drop of 8 per cent.
China state planner to issue new rules on commodity price indexes
China’s state planner said on Thursday it would issue new rules on management of price indexes for key commodities and services to be effective from Aug. 1.
The measures will aim to standardise compilation of price indexes and the release of information, the National Development and Reform Commission said on its official WeChat account.
India Reduces Benchmark Base Import Prices of Vegetable Oils
India cut benchmark import prices of edible oils in a surprise move, after keeping the rates unchanged a day earlier, amid a drop in global prices.
Malaysia maintains July crude palm oil export tax at 8%
Malaysia maintained its July export tax for crude palm oil at 8%, a circular on the Malaysian Palm Oil Board website showed on Thursday.
The world’s second-largest palm exporter calculated a reference price of 4,668.15 ringgit ($1,129) per tonne for July.
The export tax structure starts at 3% for crude palm oil in a 2,250 to 2,400 ringgit-per-tonne range. The maximum tax rate is set at 8% when prices exceed 3,450 ringgit a tonne.
NEARNESS OF THE HARVESTING PRESSES DOWN VALUES IN THE BRAZILIAN SPOT MARKET
With the nearness of the harvesting of the second 2020/21 crop, corn prices dropped in the spot market of most Brazilian regions surveyed by Cepea in the first fortnight of June.
Purchasers were postponing deals, expecting prices to decrease more as the harvesting advances. Sellers were cautious about making large volumes available in the market, since inventories are low and many of them are still uncertain about crops productivity. In that scenario, liquidity was low in Brazil in the first half of the month.
In São Paulo State, purchasers put pressure on values, and the ESALQ/BM&FBovespa Index for corn (Campinas) dropped by 6.8% between May 31 and June 15, closing at 93.27 BRL (18.50 USD)/60-kilo bag on June 15.
Argentine farmers have sold 21.8 mln tonnes of 2020/21 soy – government
Argentine farmers have sold 21.8 million tonnes of soybeans from the recently-harvested 2020/21 season, after deals were done over the last week for 853,500 tonnes, the Agriculture Ministry said on Wednesday in a report with data updated through June 9.
The rhythm of Argentine soybean sales is slower than the previous year’s, when by this point in the season 25.3 million tonnes of the oilseed had been sold, according to official data.
Argentina’s 2020/21 soy harvest is expected at 43.5 million tonnes, according to the Buenos Aires Grains Exchange, versus an estimated 49 million tonnes in the 2019/20 crop year.
Canada wheat production slightly up on relieving rainfall across the Southern Prairies – Refinitiv Commodities Research
Recent beneficial rainfall and near normal temperatures throughout the Southern Prairies fractionally raise 2021/22 Canada wheat production to 31.9 [28.7–36.4] million tons. Our current estimate puts planted area at 9.7 million hectares, down 4.6% from last season, which is slightly above the StatCan’s 9.5 million hectares. In June’s WASDE (10 June), USDA placed Canada wheat production at 32 million tons, unchanged from last update.
Brazil soymeal exports reached an all-time high in May while Argentina exports were slashed – Refinitiv Commodities Research
Brazil shipped 1.7 million tons of soymeal in May, the highest monthly exports. Year-to-date (YTD) exports totaled 6.1 million tons, 5.4% below last year’s record, but 4.6% above the 5-year average during the time. The latest vessel line-ups data (released on 11 June) indicate that Brazil soymeal exports may approach 2.0 million tons in June. 747 thousand tons of soymeal shipments were tracked by Refinitiv trade flows as of 14 June.
Argentina soymeal exports declined substantially to the 5-year lows. Refinitiv trade flows tracked only 1.6 million tons of Argentina soymeal shipments in May, down 22% from a month ago and 34% below the 5-year average exports for the month. YTD exports totaled 8.7 million tons, 20% above last year’s same period, but 9% below the 5-year average. Argentina soy oil exports also declined by 30% from April to the five-year lows.
YTD soyoil exports in Russia totaled 162 thousand tons at the 4-year lows. YTD soymeal exports totaled 325 thousand tons, below last year’s record high, but 20% above the 4-year average. Russia June soymeal exports remain at high levels.
Analyst APK-Inform cuts Ukraine 2021 wheat crop forecast
Analyst APK-Inform on Thursday reduced its forecast for Ukraine’s 2021 wheat crop to 27.264 million tonnes from the previously expected 27.622 million tonnes but kept its export outlook unchanged at 19.75 million tonnes.
The consultancy’s report said it had also increased its forecast for the 2021 corn harvest to 36.179 million tonnes from 35.705 million tonnes.
Algeria to Return 27,000-Ton French Wheat Shipment: Ennahar
Authorities were instructed to return the soft-wheat shipment and seek compensation after they discovered the decaying cadavers of two animals since last week, Ennahar cited Agriculture Minister Abdelhamid Hemdani as saying. The supplier of the wheat to be blacklisted: Hemdani
U.S. generation of renewable fuel credits rises in May -EPA
The United States generated more renewable fuel blending credits in May than in April, data from the Environmental Protection Agency’s website showed on Wednesday.
- About 1.26 billion ethanol (D6) blending credits were generated in May, up from 1.14 billion in April, according to the data.
- About 396 million biodiesel (D4) blending credits were generated last month, up from 386 million the month prior.
Hogs on Biggest Losing Streak in a Year Amid Export Worries
- Futures drop by exchange limit, fall for a fifth session
- Soy falls amid slow U.S. processing and biofuel policy concern
Hog futures in Chicago fell by exchange limits Wednesday amid signals that China may slow down international purchases.
Herds in the Asian nation, the world’s biggest pork consumer, are rebounding after a deadly virus. Prices for the pigs have dropped low enough that overseas purchases are becoming less appealing. That’s a problem for U.S. pork producers because Chinese buying on the world market previously pushed hog futures to six-year highs.
Another bearish signal that has emerged is a slowdown in slaughter at U.S. plants, which could potentially raise costs for meat giants like Tyson Foods Inc. and JBS SA. Margins for pork packers are already tightening.
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