Global Ag News for May 24

TODAY—-  EXPORT INSPECTIONS, CROP PROGRESS

Wheat prices overnight are down 16 3/4 in SRW, down 12 3/4 in HRW, down 11 in HRS; Corn is down 13 1/4; Soybeans down 14; Soymeal down $0.26; Soyoil down 0.87.

Markets finished last week with wheat prices down 42 1/4 in SRW, down 41 in HRW, down 25 1/2 in HRS; Corn is down 6; Soybeans down 74 3/4; Soymeal down $1.86; Soyoil down 4.38.

For the month to date wheat prices are down 77 1/4 in SRW, down 92 1/4 in HRW, down 74 1/4 in HRS; Corn is down 27; Soybeans down 22; Soymeal down $29.80; Soyoil up 2.23.

Chinese Ag futures (SEP 21) Soybeans down 56 yuan ; Soymeal down 22; Soyoil down 186; Palm oil down 214; Corn down 24 — Malasyian Palm is down 91.

Malaysian palm oil prices overnight were down 92 ringgit (-2.31%) at 3899 nearing its lowest settlement in three weeks, dragged down by soybean oil and amid concerns that lockdowns in India to halt the spread of Covid-19 are weakening demand.

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

The player sheet had funds net sellers of 2,000 contracts of SRW Wheat; sellers of 20,000 corn, sellers of 3,400 soybeans, sellers of 3,000 Soymeal, and; net sellers of 1,500 lots of soyoil.

Preliminary changes in futures Open Interest as of May 21 were: SRW Wheat up 2,830 contracts, HRW Wheat up 1,251, Corn up 1,512, Soybeans up 5,167, Soymeal up 1,794, Soyoil up 5,036.

There were no changes in registrations  Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 165 Soybeans; 1,003 Soyoil; 442 Soymeal; 1,249 HRW Wheat.

 US BASIS/CASH

Basis bids for corn shipped by barge to the U.S. Gulf Coast and loaded for export remained firm on Friday, supported by strong demand from China, while soybean bids rebounded from midweek declines, traders said.

Argentina Crushed 405k Tons of Soy at Vicentin Plants in April

Vicentin continued to lease its crushing and storage plants to rivals in April, bringing in $7.2m for the month to the bankrupt agriculture trader, the company’s board said in a report to creditors sent by an outsourced PR firm. Vicentin had other revenue streams including $2.1m in exports of refined vegetable oil.

SOYBEAN/CEPEA: Brazilian processors reduce purchases, and prices drop in Brazil

Cepea, May 21 – Soybean prices have dropped in Brazil this week, due to the absence of purchasers in the domestic market and also because of international devaluations and the dollar depreciation against Real. Lower demand in the Brazilian market is linked to the also weak demand for soybean meal, since most purchasers have built inventories of this by-product.

As regards soy oil agents from the Brazilian food sector claim difficulties to purchase the product, which is pushing up quotes in the domestic market. Lower oil supply is linked to the fact that some Brazilian processors began the maintenance period ahead of schedule, as a strategy to keep their crush margin.

According to data from Abiove (Brazilian Association of Vegetable Oil Industries) released on May 14, soybean crushing in the first quarter of 2021 was 20.4% lower than that in the same period last year – these data accounts for 85% of the monthly sample.

Stranded grains ships to be towed free from Rosario, says ports chamber

Seven grains ships stranded at Argentina’s export hub of Rosario will be towed free and sent out to sea after they were loaded with more produce than could be carried on the port’s increasingly shallow waters, local authorities said on Friday.

Rosario traffic has been snarled in the aftermath of a 48-hour strike by tugboat captains and other workers managing the flow of agricultural cargo ships.

Seven ships, six of them large Panamax vessels, loaded with soymeal, corn and other farm products were moored at Rosario during the work stoppage. After the strike they were unable to embark because they had been loaded with more cargo than could be carried on the port’s increasingly shallow waters.

“They will start leaving Saturday morning,” he added. Once the ships are towed to the main channel of the Parana River they will be able to sail south past Buenos Aires to the Atlantic.

Paraguay and Brazil have agreed to release water from the Itaipu dam in order to facilitate barge traffic that had been stalled by the shallowness of the Parana.

But the labor issues are not over. The strike is set to resume for another 48 hours next week if union demands over access to COVID-19 vaccines are not met, labor leaders say.

The Parana has been depleted by dry weather in Brazil, where the river starts. Its shallowness is shaving tonnage off allowable cargos, and meteorologists do not expect the navigability of the waterway to improve over the short term.

Australia to See Record Canola Crop as High Prices Spur Planting

Australia’s canola harvest may exceed last year’s record of 4.28m tons as buoyant prices have encouraged farmers to devote more land to the oilseed, according to the Australian Oilseeds Federation’s May crop report.

China’s Progress on U.S. Trade Deal Promises Slows in April

China’s imports of American goods slowed in April, pulling back on the already incremental progress toward the purchase targets agreed with the U.S. in the 2020 trade deal.

China bought $10.4 billion worth of manufactured, agricultural and energy goods in April, taking the total in the 16 months since the trade deal was signed in January 2020 to $147 billion, according to Bloomberg analysis of official Chinese data. That progress was the slowest pace this year and reached 38.9% of the two-year target of $378 billion, compared to March’s 36.1%.

There’s no sign of when the two sides might next talk about the deal, although the U.S. side said it would meet with China to discuss it “soon.”

Brazil Soybean Crop Estimate Raised to 137.2M Mt by Safras

(Bloomberg) — Soybean 2020/21 crop is expected to total 137.19 million tons, an increase of 7.9% over the previous season’s crop, which was 127.178 million tons, Safras & Mercado consulting firm says in emailed report.

• With the harvest practically completed, Safras indicates an increase of 4% in the area, estimated at 38.93 million hectares
• Despite delays in planting and harvesting in some states, the predominance of a favorable climate has allowed for an optimal development of crops in most states this season: Safras

CORN/CEPEA: Prices follow opposite trends among regions; liquidity is low in BR

Corn prices have followed opposite trends in the Brazilian market this week, depending on the region. Steeper devaluations were observed in Paraná and Mato Grosso do Sul. Besides the expectations for better weather conditions in Brazil, price drops in Argentina and the dollar depreciation against Real led some Brazilian purchasers to resume importing corn. On the other hand, in São Paulo and in Rio Grande do Sul, prices rose slightly – some regions in these states only produce the summer crop, which is leading farmers to limit the volume available for sale.

In Rio Grande do Sul, 88% of the summer crop has been harvested, according to Emater/RS. As the soybean harvesting has advanced, corn activities are expected to step up.

In Paraná, according to data from Seab/Deral, 99% of the summer crop had been harvested until May 17. As for the second crop, 98% of the area has been sown, and 23% of crops are in good conditions; 46%, in average conditions; and 31%, in bad conditions.

Ukraine grain export prices fall over past week

Ukrainian wheat export prices have reversed its trend direction, having lost $6 a tonne over the past week thanks to improved crop forecasts in key production regions, the APK-Inform agriculture consultancy said on Saturday.

Bid prices for high-quality soft milling wheat decreased to $263-$270 a tonne FOB Black Sea port, APK-Inform said. Feed wheat lost by $5 a tonne to $261-$268 FOB Black Sea.

 Ukraine ups 2020/21 barley export forecast, keeps wheat and corn

Ukraine’s agriculture ministry has increased forecast for 2020/21 barley exports to 4.15 million tonnes from the previous outlook of 4.0 million, the ministry’s data showed on Saturday.

Russia’s grain export estimates for May by Sovecon consultancy

Russia’s May exports of wheat, barley and maize (corn) are estimated at 2.0 million tonnes, up from 1.1 million tonnes in April, the Sovecon agriculture consultancy said.

Soybean meal prices doubled; govt should permit import at zero duty: AIPBA

Expressing concern over rise in animal feed prices in the domestic market, the All India Poultry Breeders Association (AIPBA) on Sunday demanded the government to reduce import duty on soybean meal to zero for at least five months. Soybean meal remains the most common protein source for all compound feeds for poultry, dairy cattle and pigs in the country and worldwide.

 Alberta Crop Planting Ahead of Average at 71% Seeded

Seeding of Alberta crops are ahead of the five-year average of 56%, the provincial government said in a report Friday.

• Farmers planted 82% of their spring wheat by May 18 and 65% of barley
  • 57% of canola has been planted
• Soil moisture is moderately low in many parts of the province
  • Pasture and hay fields have had a slow start due to cool temperatures and lack of moisture

U.S. Cattle on Feed Rose to 11.73M Head on May 1

The feedlot herd rose 4.7% from a year ago, according to the USDA’s monthly report. Analysts were expecting a rise of 3.7%. Placements onto feedlots up 27.2% to 1.821m head. Cattle marketed from feedlots increased 32.8% to 1.938m head.