Global Ag News for June 9

TODAY—- EIA WEEKLY ENERGY, WEEKLY ETHANOL

Wheat prices overnight are down 6 1/4 in SRW, down 7 in HRW, down 19 3/4 in HRS; Corn is down 11; Soybeans down 12 1/2; Soymeal down $0.30; Soyoil down 0.95.

For the week so far wheat prices are down 9 in SRW, down 11 in HRW, down 59 1/2 in HRS; Corn is up 6 1/2; Soybeans up 7 3/4; Soymeal down $0.95; Soyoil up 1.28. For the month to date wheat prices are up 15 1/4 in SRW, up 12 1/4 in HRW, up 22 3/4 in HRS; Corn is up 53; Soybeans up 71 3/4; Soymeal down $8.70; Soyoil up 6.87.

Chinese Ag futures (SEP 21) Soybeans down 28 yuan ; Soymeal up 15; Soyoil down 92; Palm oil down 68; Corn up 3 — Malasyian Palm is down 186. Malaysian palm oil prices overnight were down 186 ringgit (-4.59%) at 3863 falling for a third session on prospects that stockpiles in the world’s second-biggest grower Malaysia may be bigger than expected amid higher production and lackluster demand.

 Midwest corn, soybean and winter wheat forecasts: West: Isolated showers southeast through Wednesday. Mostly dry Thursday. Scattered showers Friday. Isolated showers south Saturday. Temperatures above to well above normal through Friday, above normal Saturday. East: Scattered showers through Friday. Isolated showers Saturday. Temperatures above to well above normal through Saturday. 6 to 10 day outlook: Scattered showers east Sunday-Tuesday. Mostly dry Wednesday-Thursday. Temperatures above normal Sunday, near to above normal Monday, above normal west and near to below normal east Tuesday-Thursday.

The player sheet for 6/8 had funds: net buyers of 2,750 contracts of  SRW wheat, buyers of 12,750 corn, buyers of 12,000 soybeans, buyers of 3,000 soymeal, and  buyers of 6,500 soyoil.

Preliminary changes in futures Open Interest as of June 8 were: SRW Wheat up 5,995 contracts, HRW Wheat down 2,626, Corn up 3,931, Soybeans down 879, Soymeal up 373, Soyoil up 896.

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.

TENDERS

• WHEAT PURCHASE: Algeria’s state grains agency OAIC purchased optional-origin milling wheat in an international tender which closed on Tuesday, European traders said. Initial unconfirmed estimates of volumes bought were around 400,000 tonnes. Initial estimates of purchase price were around $297.50 and $298 a tonne c&f, traders said.
• VEGETABLE OILS PURCHASE: Egypt’s state commodities purchasing agency, GASC, bought some 60,000 tonnes of soyoil and 40,000 tonnes of sunflower oil in an international tender. Traders said the soyoil was all bought at $1,299 a tonne c&f with 30,000 tonnes bought from trading house ADM and 30,000 tonnes from Cargill. Traders said the sunflower oil was all bought at $1,368 a tonne c&f, with 30,000 tonnes purchased from Cofco and 10,000 tonnes from ADM.
• 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
• WHEAT TENDER: Japan’s Ministry of Agriculture sought 181,355 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.
• WHEAT TENDER: Algeria probably booked 400,000 tons to 500,000 soft wheat for August shipment at about $297-$298 a ton in a tender that closed Tuesday.

PENDING TENDERS

• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat.
• WHEAT BRAN TENDER: Jordan’s state grains buyer issued an international tender to purchase 20,000 tonnes of wheat bran.
• WHEAT TENDER: The Ethiopian government has issued an international tender to buy some 400,000 tonnes of milling wheat

 ETHANOL: U.S. Weekly Production Survey Before EIA Report

Output and stockpile projections for the week ending June 4 are based on eight analyst estimates compiled by Bloomberg.

• Production seen slightly higher than last week at 1.036m b/d
• Stockpile avg est. 19.698m bbl vs 19.588m a week ago

China to Expand Pork Reserves to Improve Control Over Prices

China, the world’s biggest consumer and producer of pork, plans to expand state inventories of the staple to strengthen its control over the market, buying when prices are low and selling when they are high. The move comes as the country’s factory-gate inflation in May increased to the highest level since 2008 and as the government vows to increase supplies of key consumer goods to keep prices under control. Pork, corn, wheat, edible oils and vegetables are top items in the price control list. While pork prices have tumbled this year, they soared to a record in 2019, boosting food inflation at that time, after a devastating outbreak of African swine fever reduced national hog numbers by almost half.

BRIEF-Brazil Soy Exports Seen Reaching 11 Mln Tns In June – Anec –

• BRAZIL SOY EXPORTS SEEN REACHING 11 MILLION TNS IN JUNE – ANEC
• BRAZIL SOYMEAL EXPORTS SEEN REACHING 1.96 MILLION TNS IN JUNE – ANEC

Soybean crushing hits six-year high in April – industry chamber

Soybean crushing in Argentina reached a six-year high in April when 4.2 million tonnes of the oilseed was processed, thanks to ample farmer sales due to high prices, the CIARA-CEC chamber of oilseed processors said in a report on Tuesday.

• Soybean crushing in April was the second highest one-month rate ever, CIARA-CEC said in the report.
• In the first quarter, 13.7 million tonnes of soy was crushed into meal and soyoil in Argentina, it said.
• “The factor that motivated producers to sell more of their soybeans was the improvement in price,” the chamber said.
• The oilseed is being traded on the Rosario grains exchange at about 31,700 pesos ($330) per tonne.

AgriMer Raises Wheat Stockpile Estimate on Lower Feed Demand

France’s soft-wheat stockpiles are expected to end the 2020-21 season at 2.69m tons, up from a May estimate for 2.61m tons, crops office FranceAgriMer said in a report on Wednesday.

• Animal-feed usage trimmed to 4.5m tons, from 4.55m tons
  • Meanwhile, export demand climbs on stronger sales within the EU
• Barley stockpile estimate raised to 1.06m tons, from 1.02m tons
• Corn stockpile estimate cut to 1.8m tons, from 1.92m tons, on stronger demand
  • Exports are rising to other EU countries and animal-feed use climbs

Argentine farmers sales of 2020/21 soybeans down from year before

Argentine farmers have sold 20.9 million tonnes of soybeans from the 2020/21 season, after transactions were registered over the last week for 863,600 tonnes, the Agriculture Ministry said on Tuesday in a report with data updated through June 2.

The rhythm of Argentine soybean sales is slower than the previous year’s, when by this point in the season 24.4 million tonnes of the oilseed had been sold, according to official data.

Argentine growers are also harvesting 2020/21 corn. The ministry said in the report that sales of 29.7 million tonnes of this season’s corn crop have been registered so far, 3 million tonnes more than had been done by this point last season.

Unclear If China Corn Needs Are Structural Change: USDA’s Meyer

Chinese demand for corn is one of the factors driving grain and oilseeds markets higher, Seth Meyer, chief economist at USDA, said Tuesday in a panel at the International Grains Council conference.

Biden Pushed by Unions on ‘Skyrocketing’ Biofuel Mandate Costs

Labor leaders are pressing President Biden to waive a U.S. mandate to blend ethanol with gasoline in response to requests from governors, mayors and others.

• “Action is urgently needed to reduce the skyrocketing cost” of biofuel compliance credits “and preserve American union jobs,” labor union heads wrote in June 2 letter to Biden
• High prices for ethanol credits used to track blending compliance are slowing refinery upgrade projects that typically would employ thousands of workers: letter
• The credits, known as RINs, have more than doubled since the start of the year, and credits tracking ethanol blending traded Tuesday at all-time highs of $1.97, according to Jordan Fife, trading manager at BioUrja Trading LLC in Texas
• Biofuel advocates say refiners have option to invest in more blending infrastructure and generate their own RINs

China Sinograin to Sell Ukraine Corn From Reserves on June 11

The state stockpiler will offer 11,058 tons of corn imported from Ukraine at auction on Friday, co. said in a statement late Tuesday. Corn from 2020 harvest stored in Dongguan city, Guangdong province

Ukraine to issue new 2021 grain crop forecast in early July

Ukraine’s agriculture ministry will issue its updated 2021 grain crop forecast in early July, taking into account weather conditions, a senior agriculture official said on Tuesday.

• The ministry has said favourable weather in winter and early spring could help to boost the harvest to at least 75 million tonnes this year versus 65 million tonnes in 2020.
• Analysts see grain output at 73.6 million tonnes, including 27.6 million tonnes of wheat. Output of corn, the country’s largest harvest, could reach 35.7 million tonnes. Ukraine could also thresh almost 8 million tonnes of barley.
• Analysts and traders, however, fear that rains that have continued over the past few weeks almost throughout Ukraine, as well as cold weather, could negatively affect the quality of wheat and add uncertainty to the estimates of the corn harvest.
• In 2020, Ukraine harvested 64.9 million tonnes of grain, including 24.9 million tonnes of wheat, 30.3 million tonnes of corn and 7.6 million tonnes of barley.

Russia cuts wheat exports nearly 30% MoM in April, around 19% in 4M 2021 – Federal Customs Service

Russia cut exports of wheat and meslin, a wheat-rye mixture, by 30.3% month-on-month to 799,000 tonnes in April 2021, Russia’s Federal Customs Service (FCS) said in a statement.

• Supplies decreased 23.5% month-on-month to $230.6 million in value terms.
• Additionally, exports of wheat and meslin declined 19.2% year-on-year to 9.5 million tonnes in 4M 2021, totaling $2.4 billion, a decrease of 5.1% year-on-year.

Russia boosts imports of palm oil sharply in April – Federal Customs Service

Russia boosted imports of palm oil sharply by 57.1% month-on-month to 108,800 tonnes in April 2021, totaling $119.2 million, a substantial rise of 66.4%, according to data from the country’s Federal Customs Service (FCS) that was published on Tuesday.

Supplies of palm oil increased 20.5% year-on-year to 360,400 tonnes in 4M 2021, with the growth rate significantly exceeding the 3M 2021 figure of 9.1% year-on-year. The value of imports soared nearly 1.6-fold to $365.3 million, while the growth rate in 3M 2021 was 37.9%

India’s booming corn exports amid global rally ease supply worries

India has stepped up corn exports as a rally in global prices to their highest since 2013 has made shipments from the South Asian country competitive, easing concerns about rising food inflation in Southeast Asia. Indian exporters have signed deals to sell around 400,000 tonnes of corn for shipment in June to July to animal feed producers in Vietnam, Malaysia, Sri Lanka and Bangladesh, according to two Singapore-based feed grain traders.

Bulgaria sees 2021 wheat crop up to 5.8 mln T-agriculture minister

Favourable weather and recent rainfall is expected to bring Bulgaria’s 2021 wheat crop to 5.6 million and 5.8 million tonnes, interim Agriculture Minister Hristo Bozukov said on Wednesday. The Black Sea country expects to see about a 20% annual increase of its wheat crop this year after an extensive drought cut its crop to 4.7 million tonnes in 2020.