Global Ag News for May 19

TODAY—- EIA WEEKLY ETHANOL

Wheat prices overnight are down 10 in SRW, up 11 in HRW, down 4 in HRS; Corn is down 1; Soybeans down 13; Soymeal down $0.10; Soyoil down .75.

Chinese Ag futures (SEP 21) Soybeans down 8 yuan ; Soymeal up 21; Soyoil up 6; Palm oil down 32; Corn down 10 — Malasyian Palm is up 200.

Malaysian palm oil prices overnight were down 156 ringgit (-3.50%) at 4301 tracking losses in soy markets as concerns of tight vegetable oil supplies began to ease and as traders waited for export tax decisions from top growers Indonesia and Malaysia.

Midwest corn, soybean and winter wheat forecasts: West: Scattered showers through Saturday. Temperatures near to above normal Tuesday, above to well above normal Wednesday-Saturday. East: Scattered showers through Saturday, mostly west. Temperatures near to above normal Tuesday, above to well above normal Wednesday-Saturday. 6 to 10 day outlook: Scattered showers Sunday-Thursday. Temperatures above to well above normal Sunday-Monday, above normal Tuesday-Thursday.

The player sheet had funds net sellers of 1,500 contracts of SRW Wheat; buyers of 4,000 corn, sellers of 9,000 soybeans, sellers of 6,000 Soymeal, and; net sellers of 1,000 lots of Soyoil.

Preliminary changes in futures Open Interest as of May 17 were: SRW Wheat up 1,766 contracts, HRW Wheat down 1,633, Corn down 11,562, Soybeans down 315, Soymeal down 2,313, Soyoil up 24.

There were changes in registrations (-68 SRW Wheat, -7 HRW Wheat) Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 165 Soybeans; 1,020 Soyoil; 442 Soymeal; 1,255 HRW Wheat.

TENDERS

  • CORN SALE: The U.S. Department of Agriculture confirmed private sales of 1.36 million tonnes of U.S. corn to China for shipment in the 2021/22 marketing year.
  • WHEAT TENDER: Japan’s Ministry of Agriculture sought 121,501 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.
  • WHEAT TENDER: Bangladesh’s state grains buyer has issued another international tender to purchase 50,000 tonnes of milling wheat, traders said. The deadline for submission of price offers is May 30, they said.
  • CORN: Taiwan’s MFIG purchasing group bought about 65,000 tonnes of animal feed corn to expected to be sourced from Argentina in an international tender which closed on Wednesday

PENDING TENDERS

  • VEGETABLE OIL TENDER: A Tunisian state agency issued an international tender to purchase up to 27,000 tonnes of vegetable oils.
  • FEED WHEAT TENDER: Indonesia’s state procurement agency Bulog issued an international tender buy and import about 180,000 tonnes of animal feed wheat.
  • WHEAT TENDER: Algeria’s state grains agency OAIC has issued an international tender to buy milling wheat to be sourced from optional origins.

CROP TOUR: ‘Hearty’ Kansas Wheat May Exceed USDA Yield Forecast

Wheat in Kansas, the biggest growing state in the U.S., is showing resilience after an onslaught of challenges ranging from record frigid temperatures to drought, according to crop experts on the first day of the Wheat Quality Council’s annual tour.

  • Yields for winter wheat are estimated at 59.2 bu/acre, based on 171 stops in fields throughout the region on Tuesday. That compares with 46.9 bu/acre and 240 stops on the first day of the tour two years ago
    • NOTE: There is no corresponding 2020 figure due to the pandemic
  • Experts say many things can still go wrong before the harvest next month, but the wheat so far looks likes a “pretty hearty crop,” Romulo Lollato, wheat expansion specialist at Kansas State University, said in an interview
  • “If the weather cooperates,” yields could end up surpassing the USDA estimate for the Kansas wheat crop to average 48 bushels per acre, up 3 bushels from last year: Lollato
  • Fields on day one of crop tour were muddy after heavy rains; still, precipitation remains lower than usual, said Lucas Haag, agronomist at Kansas State University

 Anec raises Brazil’s May soy export forecast to 16.1 mln T

BRAZIL SOY EXPORTS SEEN REACHING UP TO 16.189 MILLION TNS IN MAY VERSUS UP TO 15.316 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC

BRAZIL CORN EXPORTS SEEN REACHING 0 MILLION TNS IN MAY VERSUS 0 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC

Brazil private ports move 11% more cargo in Q1, driven by commodities trade – ATP lobby

Brazil’s private port terminals moved some 185 million tonnes of cargo in the first quarter, an 11% annual increase driven mainly by trade in mineral and agricultural commodities, data compiled by private port lobby group ATP showed on Tuesday.

Even with delays caused by the weather, movement of solid bulk cargos including grains like soybeans grew by 7% in the first quarter, ATP data showed.

Coceral Boosts Europe’s 2021 Wheat-Crop Estimate to 145.8M Tons

Coceral boosts its outlook for this year’s EU wheat harvest to 145.8m tons, from an earlier outlook for 141.5m tons, the industry group said in an emailed report.

German Winter-Wheat Area for 2021 Harvest Rises 3%: Destatis

German farmers planted 2.84m hectares of winter wheat for this year’s harvest, up 3% from the previous season, according to a statement from Germany’s federal statistics office.

Oilseed Meal Exports From India Fall 5.6% M/m in April: Group

Oilseed meal shipments fell to 303,458 tons in April from 321,435 tons a month earlier, the Solvent Extractors’ Association of India said in an emailed statement on Wednesday.

Manitoba Farmers Plant 76% of Crop as Temperatures Heat Up-

Warmer conditions enabled farmers in Manitoba to increase seeding, with large amounts of canola and soybean crops now planted, the provincial government says Tuesday in a weekly crop report.

Malaysia Keeps June Crude Palm Oil Export Tax at 8%

Gazetted price for crude palm oil at 4,627.40 ringgit per ton, which incurs the maximum export tax of 8%, according to a statement from the Customs Department posted on the Malaysian Palm Oil Board’s website.

Govt procures 30% more wheat from farmers than last year

New Delhi: The government has procured 36.6 million tonne of wheat so far in the current season, which is nearly 30% more than the quantity bought from farmers during the corresponding period last year, food ministry data shows. This trend suggests that foodgrain stocks are poised to be more than what is required for subsidised distribution among the poor through the public distribution system or PDS.

Argentina sells 18.5 mln tonnes of 2020/21 soy, lagging 2019/20 sales rhythm

Argentine growers have sold 18.5 million tonnes of soybeans from the current 2020/21 season, after clinching deals for 1.2 million tonnes over the last week alone. The data in the report was updated through May 12.

With farmers hoarding soybeans as a hedge against an anemic local peso currency, this year’s sales rhythm is slower than last year’s when, by mid May, farmers had sold 22.3 million tonnes of the oilseed.

Despite strong current agricultural commodity prices, many farmers are opting to save by way of piling up soybean stocks rather than banking pesos. The local currency has weakened 10.6% so far this year to 94.17 per U.S. dollar.

Farmers in the South American grains powerhouse are currently harvesting 2020/21 soybeans and corn. The Rosario grains exchange expects a soy crop of 45 million tonnes and 50 million tonnes of corn to be harvested.

Growers in Argentina have sold 27.9 million tonnes of 2020/21 corn, according to the ministry’s report, or 3.5 million tonnes more than what was sold by this point last year.

India’s soybean planting could rise by over 10% on record prices

  • Farmers seen switching away from pulses, cotton
  • Production depends on June-Sept monsoon rains
  • Higher soybean output could limit edible oil imports

Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said.

Increased production of India’s main summer-sown oilseed could help the world’s biggest vegetable oil importer trim costly purchases of palm oil FCPOc3, soyoil BOc1 and sunflower oil from Indonesia, Malaysia, Argentina and Ukraine.

Local soybean prices NSBc1 have more than doubled since the start of the 2020/21 marketing year on Oct. 1 and hit a record high of 8,100 rupees ($111.00) per 100 kg last month on a sharp rise in soymeal exports.

German Winter-Wheat Area for 2021 Harvest Rises 3%: Destatis

German farmers planted 2.84m hectares of winter wheat for this year’s harvest, up 3% from the previous season, according to a statement from Germany’s federal statistics office.

PALM OIL MOST EFFICIENT OIL CROP TO CATER FOR GROWING GLOBAL

Kenanga Research has posited that palm oil is the most efficient oil crop in terms of oil yield to land use, and hence the best environmental option to cater for the growing global population (+14 per cent by 2050). The research house said to produce one tonne of oil, palm only requires 0.26 hectare (ha) of land, while its biggest competitor soybean would require 7.7 times the amount at 2.0 ha.

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