Global Ag News for Nov 7.23
World wine output to fall to lowest in 60 years
World wine production is expected to fall to its lowest level in 60 years in 2023 due to poor harvests in the Southern Hemisphere and in some major European producers, the International Organisation of Vine and Wine (OIV) said on Tuesday.
In initial projections, the OIV pegged world wine output, excluding juices and musts, at between 241.7 million and 246.6 million hectolitres (mhl), with a mid-range estimate of 244.1 mhl.
This would be 7% lower than last year and the smallest since 1961 when it had fallen to 214 mhl, the OIV said. A hectolitre is the equivalent of 133 standard wine bottles.
“This negative scenario can be attributed to significant declines in major wine-producing countries in both Hemispheres,” the OIV said in a statement.
“While in the Southern Hemisphere, Australia, Argentina, Chile, South Africa, and Brazil recorded year-over-year variations between -10% and -30%, in the Northern Hemisphere, Italy, Spain and Greece are the countries that suffered the most from bad climatic conditions during the growing season,” it said.
OIV expects Italian wine production to drop 12% to 44 mlh, its lowest level since the poor harvest of 2017.
The tumble means Italy will lose its position as the world’s largest wine producer, with France set to reclaim the number one spot for the first time in nine years.
Drought-hit Spain kept its position as the third largest wine producer despite its production set to fall to the lowest in the last 20 years, down 14% fall in output from last year and down 19% on the five-year average.
The sharp fall in Italian and Spanish production would lead to a 7% drop in EU output this year at 150 mhl, the third lowest production level since the beginning of the century.
U.S. wine output, the world’s fourth largest, was expected at 25.2 mhl this year, an increase of 12% from 2022. Cool temperatures and heavy winter rains in the Napa and Sonoma regions brought much-needed moisture to the vines after several years of drought, the OIV said.
FUTURES & WEATHER
Wheat prices overnight are up 8 in SRW, up 8 in HRW, up 6 3/4 in HRS; Corn is up 3 1/4; Soybeans up 14 1/4; Soymeal up $8.40; Soyoil up 0.13.
For the week so far wheat prices are up 5 3/4 in SRW, down 3 in HRW, up 10 in HRS; Corn is down 5 1/2; Soybeans up 24 1/2; Soymeal up $13.70; Soyoil up 0.26.
For the month to date wheat prices are up 22 in SRW, up 11 1/4 in HRW, up 21 3/4 in HRS; Corn is down 7; Soybeans up 65 3/4; Soymeal up $24.80; Soyoil down 1.80.
Year-To-Date nearby futures are down 27.0% in SRW, down 27.9% in HRW, down 22.1% in HRS; Corn is down 30.5%; Soybeans down 10.5%; Soymeal down 4.7%; Soyoil down 22.2%.
Chinese Ag futures (JAN 24) Soybeans up 18 yuan; Soymeal up 12; Soyoil up 6; Palm oil down 22; Corn down 7 — Malaysian Palm is up 48. Malaysian palm oil prices overnight were up 48 ringgit (+1.29%) at 3768.
There were changes in registrations (112 Soybeans). Registration total: 3,005 SRW Wheat contracts; 607 Oats; 4 Corn; 710 Soybeans; 62 Soyoil; 0 Soymeal; 400 HRW Wheat.
Preliminary changes in futures Open Interest as of November 7 were: SRW Wheat down 6,684 contracts, HRW Wheat down 2,539, Corn up 8,932, Soybeans up 3,840, Soymeal up 1,842, Soyoil up 3,010.
Brazil: Southern areas finally got a break from the heavy rain this weekend, but it will not last long as another system moves in later this week and weekend with potential for more heavy rain that will exacerbate flooding and wetness issues for the remaining wheat harvest as well as corn and soybean planting. Central areas got a nice boost in precipitation coverage last week, but that has moved north for this week. Occasional showers through the weekend will be well below-normal in coverage and intensity, causing a return to more concerns for the soybean crop where planting is slow. This may lead to issues with the safrinha crop later this season.
Argentina: A system will move through with scattered showers Tuesday and Wednesday, while another system will move through Friday through this weekend. Rainfall should be beneficial for most areas as the weather situation continues to take a positive turn for corn and soybeans.
Northern Plains: Temperatures rose significantly this weekend and melted a lot of the snowpack, though some remains over northeast North Dakota, where remaining fieldwork will be slow. A couple of disturbances will move through this week, with mixed precipitation and continued difficulties in accomplishing the remaining fieldwork.
Central/Southern Plains: A front will move through the region the next couple of days but be mostly dry until Thursday when a disturbance develops along it, bringing showers to southern areas which should be helpful for winter wheat where they hit. Temperatures will be mostly near or above normal for the next couple of weeks, making moisture important for root development before wheat goes dormant for winter.
Midwest: Scattered showers moved through northern areas Sunday night and Monday, slowing progress for fieldwork. Temperatures have risen and will be warm this week until another front moves through Wednesday and Thursday. That front will bring more showers through the region and bring temperatures back down to normal but any chilly air will not last long with warmer temperatures building again next week. The up-and-down temperature pattern and occasional precipitation will make the remaining fieldwork difficult in some cases, especially across the north, but could help with water levels on the Mississippi River.
The player sheet for Nov. 7 had funds: net sellers of 3,500 contracts of SRW wheat, sellers of 6,500 corn, sellers of 2,500 soybeans, buyers of 3,500 soymeal, and sellers of 2,000 soyoil.
- SOYBEAN SALES: Chinese importers bought around 10 cargoes of U.S. soybeans on Tuesday, or about 600,000 metric tons, for shipment from Gulf Coast and Pacific Northwest export terminals between December and March, trade sources said.
- SOYBEAN SALE: The U.S. Department of Agriculture (USDA) confirmed private sales of 110,000 metric tons of U.S. soybeans for shipment to China in the 2023/24 marketing year.
- WHEAT SALE: Jordan’s state grains buyer purchased about 60,000 metric tons of hard milling wheat to be sourced from optional origins in an international tender on Tuesday
- WHEAT SALES: Algerian state grains agency OAIC has bought milling wheat in an international tender which closed on Tuesday.
- WHEAT TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) is looking to buy a total of 108,890 metric tons of food-quality wheat from the United States, Canada and Australia in a regular tender that will close on Nov. 9.
- CORN TENDER: The Korea Feed Association (KFA) has issued an international tender to purchase up to 69,000 metric tons of animal feed corn to be sourced from optional origins
- RICE TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp issued an international tender to purchase an estimated 177,000 metric tons of rice, largely from the United States, European traders said. Of the total, 137,000 tons should be sourced from the United States, 20,000 tons from any origins and 20,000 tons from Vietnam. The deadline for submissions of price offers in the tender was Nov. 2 for the U.S. and optional origin rice, and Nov. 9 for the Vietnamese rice, they said.
ETHANOL: US Weekly Production Survey Before EIA Report
Output and stockpile projections for the week ending Nov. 10 are based on seven analyst estimates compiled by Bloomberg.
- Production seen higher than last week at 1.058m b/d
- Stockpile avg est. 21.222m bbl vs 21.012m a week ago
- NOTE: EIA announced that it will delay its Weekly Petroleum Status Report until Nov. 15
China makes largest US soy purchases in months -traders
China booked its largest single-day U.S. soybean purchases in at least three months on Tuesday, traders said, offering a glimmer of hope for the most valuable U.S. farm export after overseas sales of the 2023 harvest had fallen well behind the normal pace.
Chinese importers bought around 10 cargoes of soybeans, or about 600,000 metric tons, for shipment from Gulf Coast and Pacific Northwest export terminals between December and March, trade sources said.
The sales would be a relief to U.S. farmers, who have seen Brazil dominate the global export market for soy as well as corn for longer than normal this year.
If confirmed, Tuesday’s sales would be the largest single-day soybean purchases by the world’s top soy importer since late July, according to U.S. Department of Agriculture (USDA) daily sales data.
They were the latest in a series of soy import deals since late last week by Sinograin, China’s state-owned importer, according to three export traders with knowledge of the deals. Total purchases over that time were estimated at as much as 20 to 25 cargoes, two traders said.
Cash premiums for U.S. soybeans at Gulf Coast terminals GRYM, GRZD jumped by as much as 10 cents a bushel on Tuesday as exporters scrambled to source supplies, traders said.
High U.S. prices due to barge shipping disruptions and stiff export market competition from Brazil, which harvested a record soy crop this year, have hampered U.S. sales in the season so far.
Confirmed sales to China as of late October were down 35% from a year ago, and sales to all destinations were down 28%. The USDA is currently projecting a 12% year-on-year export decline.
But U.S. prices have become more competitive for shipments from December through March, when Brazil’s next harvest will be available.
The USDA has confirmed private sales totaling 236,000 metric tons of U.S. soybeans over the past two days via the agency’s daily reporting system. Traders expect additional “flash sales” following the deals on Tuesday.
Argentina’s wheat production continues weather-driven fall
Argentina is set to produce 14.5 million tonnes of wheat in 2023-24, a 2-million-tonne drop from the previous forecast by the US Department of Agriculture’s Foreign Agricultural Service (FAS).
Argentina’s wheat growers continue to face dry conditions following a major drought earlier in the year.
According to the FAS’s estimates, this volume would still be 2mn tonnes higher than the current marketing year. Wheat exports are projected to reach 10mn tonnes. While 1.5mn tonnes lower than the previous estimate, this figure is still significantly higher than the 3.9mn tonnes exported over 2022-23.
In 2021-22, wheat exports were 16mn tonnes.
FAS emphasized the impact that weather conditions had on its estimates, saying, “Analysts and producers are still evaluating the negative impact of frosts in early October, which could drop production even further.”
Weather issues affect Brazil’s soybean crop prospects but early to cut projections, analysts say
Weather forecasts for November do not show a significant change in overall conditions, with scattered rains in central-north areas and downpours in the south likely compromising Brazil’s 2024 soy yields and output, analysts say.
However, it is early to determine whether soy will definitely be spoiled in the world’s biggest supplier of the oilseed.
“Perhaps this complicated planting start takes away some of the shine from the soy harvest, but there is still a long way to go,” said AgRural analyst’s Alaide Ziemmer. “I still believe that if the weather cooperates, we can have a good harvest.”
Safras & Mercado analyst Luiz Fernando Roque said that concerns still exist but that it’s “still early to talk about soy output and yield losses.”
If weather problems persist throughout December, analysts will have to start lowering projections, Roque added.
The slow pace of Brazil’s soybean planting given lack of rains in some areas and excess rain in others also raises risks for second corn and cotton, because they are planted after the soy harvest and could be forcibly sowed outside the ideal climate window, according to analysts.
Roque said the situation could lead farmers to plant second corn on a smaller area.
Brazil’s soybean production is expected to grow 4.8% in 2023/24 to a record 162 million metric tons, according to crop agency Conab, which will release a new grain forecast on Thursday.
For Cogo Intelligence in Agribusiness, soy is a resilient crop and potential losses cannot be estimated at this point. “See what happened with this year’s U.S. harvest,” Partner Carlos Gogo said.
StoneX’s analyst Ana Luiza Lodi said that despite concerns about the weather, there is not clear indication of crop failure.
On Nov. 1, StoneX raised the forecast for Brazil’s soybean harvest to 165 million tons, driven by an increase in the planted area.
2023 China soybean imports could reach 104 MMT; Importers favor Brazilian soybeans – Refinitiv Commodities Research
China soybean imports slowed in September and October with 5.33 and 5.53 million metric tons (MMT) tracked by Refinitiv trade flows, respectively. In November, however, increased arrivals of the U.S. soybeans and unseasonal high imports from Brazil will raise soybean imports for the month to 8.46 MMT with 3.84 MMT from the U.S. and 4.45 MMT from Brazil. December imports will exceed 9.30 MMT with at least 4.81 MMT from the U.S. and 3.95 MMT from Brazil. The U.S. soybean exports pace to China increased to near 5-year average in October, although outstanding sales to China remained disappointing. It was reported that China recently signed 11 agricultural products purchase contracts with U.S. exporters worth billions of dollars, showing possible increases in soybean sales to China. If implemented, China soybean imports from the U.S. over the coming months could be stronger than expected.
Overall, arrived and expected imports indicate that 2023 China soybean imports could reach 104 MMT, up 14% from the year earlier. Among them, Brazil and the U.S. account for about 67.5 and 29.3 MMT respectively. Chinese importers favor Brazilian soybeans due to competitive prices, abundant supplies and/or relatively high quality.
Moving forward, South America soybean production is expected to increase substantially early next year due to production recovery in Argentina and continuous area expansion in Brazil. Should the production gains be verified, 2023/24 world soybean supplies will increase largely from the year before, weighing on current high prices. Barring extreme weather conditions in South America, China may slow its soybean purchases, waiting for more affordable prices early next year.
EU Soft-Wheat Exports Drop 25% in Season Through Nov. 2
The European Union’s soft-wheat exports in the season that began July 1 fell to 9.95 million tons as of Nov. 2, compared with 13.2m tons in a similar period a year earlier, the European Commission said on its website.
- NOTE: The weekly report usually includes data through Sundays; this edition only goes to Nov. 2 due to “technical issue,” commission says
- Leading destinations include Morocco, at 1.64m tons; Nigeria, 1.06m tons; and Algeria, with 844k tons
- Barley exports are at 2.47m tons, down 11% y/y
- Corn imports are at 5.84m tons, down 43% y/y
EU 2023/24 soybean imports 3.83 mln T by Nov 2, rapeseed 1.60 mln T
European Union soybean imports so far in the 2023/24 season that started in July had reached 3.83 metric tons by Nov. 2, compared with 3.84 million a year earlier, data published by the European Commission showed on Tuesday.
The weekly report only included data up to Thursday Nov. 2, instead of Sunday, owing to technical issues, the Commission said.
EU rapeseed imports in the same period totalled 1.60 million tons, against 2.50 million a year earlier.
Soymeal imports totalled 5.36 million tons against 5.64 million a year ago, while palm oil imports stood at 1.19 million tons versus 1.32 million tons a year earlier.
European Soy Production on Track for More Records: Donau Soja
European soybean production will continue to break records over the next few years, spurred by higher prices, Matthias Kron, president of Donau Soja, said at the Global Grain Geneva Conference.
- Output from the European Union, Russia, Ukraine and Serbia will climb to 15m-16m tons in 2024/25: Kron
- That compares with last year’s record crop of 13m tons
- NOTE: The USDA is forecasting that the region will produce 14.5m tons in the current 2023/24 marketing year
- Donau Soja, based in Vienna, is a non-profit body responsible for certifying oilseeds in Europe, as well as promoting production and consumption
- Most soy in Europe is grown in Russia and Ukraine, with just 3m tons produced in the EU, according to Kron
Russia’s Lavrov: efforts to revive grain deal bearing no results
Russian Foreign Minister Sergei Lavrov said on Wednesday that United Nations attempts to revive the Black Sea grain initiative were still bearing no results.
Russia withdrew in July from the deal which had allowed Ukraine to safely export grain from its Black Sea ports despite the war. Since then it has frequently attacked Ukrainian ports and storage facilities, and Kyiv says hundreds of thousands of tons of grain have been destroyed.
Russia says it quit the deal because the arrangement was not delivering grain to the poorest countries, and because it still faces barriers to its own exports of grain and fertiliser.
Russia sets 2024 grain export quota at 24 mln metric tons – TASS
The Russian Agriculture Ministry set the quota for grain exports in the next year at 24 million metric tons, TASS news agency quoted First Deputy Agriculture Minister Oksana Lut as saying on Wednesday.
Russia Harvested 147m Tons of Grains in 2023, Tass Says
This number includes grain harvested in the annexed areas of Ukraine, First Deputy Agriculture Minister Oksana Lut says, according to Tass.
- Based on the harvest, Russia can export 65m tons of grains
- Shortage of labor in Russian agriculture is around 200,000 people
Egypt’s Currency Issues Have Curbed Wheat Imports: Soliman
Egypt’s currency weakness has curbed wheat imports by about 10m tons over the past two years, comparing actual shipments with the needs of the population, Hesham Soliman, president Mediterranean Star for Trading Co., said at the Global Grain Geneva conference.
- Soliman said Egypt — both the private and public sectors — has imported about 25m tons of wheat over that period compared with its requirements of 35m tons
- Alexandria-based Soliman said it’s unrealistic to trade wheat in local currencies:
- “Most countries will go back again to the dollar”
- NOTE: The Egyptian pound has dropped 49% against the dollar since the end of 2021
- Russia won’t accept Egyptian pounds for wheat and it’s not practical for importers to pay for Russian wheat in rubles: Soliman
- Traders have Egyptian pounds, but cannot pay in dollars
- Egypt has boosted wheat storage capacity to 4.2m tons in 2023, from 1.2m tons in 2014
INTERNATIONAL DEMAND IS FIRM; EXPORTS HIT A RECORD IN OCTOBER
The international demand for the Brazilian soybean was firm in late October, favored by the limited supply in other countries in South America and by the lower productivity in the United States. Moreover, prices in Brazil were attractive due to lower export premiums and the dollar valuation against Real.
In October, soybean exports totaled 5.5 million tons, a record for the month. In 2023 (up to October), the volume sold hit 92.8 million tons – data from Secex. In the second semester alone, shipments have amounted more than 30 million tons of soybean, 16.7% more than in the entire second semester of 2022.
Secex also indicates that the average revenue obtained in October was equivalent to USD 31.37/60-kilo bag (or BRL 158.91/bag), the highest since April this year. It is worth noting that the average price in the spot market was significantly below that received with shipments in October.
This scenario has led sellers to be cautions regarding trades in the spot market and many of them preferred to stock the product. Between September 29th and October 31st, the ESALQ/BM&FBovespa soybean Index (Paranaguá) and the CEPEA/ESALQ Index (Paraná) dropped 0.99% and 0.07%, respectively, to BRL 142.52 (USD 28.31)/bag and BRL 137.53 (USD 27.31)/bag on October 31st.
EU Urges Ukraine to Drop WTO Grain Case and Pursue Talks
- Grain provides key export revenue for war-torn Ukraine
- Pursuing WTO case would only please Russia, people say
The European Union has urged Kyiv to drop a case at the World Trade Organization targeting a group of member states for restricting imports of Ukrainian grain, according to people familiar with the matter.
Ukraine asked for consultations with Hungary, Poland and Slovakia under the WTO’s dispute resolution rules in September after the EU member states unilaterally restricted the grain imports, only allowing them to transit through their territories.
The nations curtailed the imports despite the EU lifting earlier restrictions and Ukraine agreeing to put in place an export licensing system covering wheat, maize, rapeseed and sunflower seeds to avoid a price-depressing flood of grain.
Ukraine Ramps Up Scrutiny of Grain Exports In Fight for Revenue
The dispute caused an ugly exchange of accusations between Ukraine and Poland.
Senior officials from the European Commission, which is representing the member states at the WTO given that trade in the 27-nation bloc falls under EU jurisdiction, have asked Ukraine to drop the case to de-escalate those tensions, the people said.
For the same reasons, the EU has also asked Ukraine to close an internal investigation it launched and that could lead to unilateral trade measures against the exports of the member states, the people said.
Pursuing the cases will be counterproductive and a public dispute will only work in Russia’s favor, they added.
“We are talking about resolving the issue as a whole. That may happen in late November,” Taras Kachka, Ukraine’s deputy economy minister, told Bloomberg News in a text message.
Ukraine’s Risky Bet Pays Off With Ships Streaming to Ports
Establishing alternative routes for Ukraine’s grain became increasingly crucial after Russia pulled out of the UN- and Turkey-backed Black Sea initiative in July. The deal allowed safe passage of ships from Ukrainian deep-sea ports, with rail and trucks, as well as barges on the Danube, serving as other transport options.
Ukraine has since established its own unilateral Black Sea shipping route, and volumes are growing. Still, rail and river exports remain vital because the sea route is seen as risky given Russia’s earlier threats to treat ships heading to Ukraine as weapons carriers.
About 1.8 million tons of agricultural goods were shipped via the Danube last month, compared with 1.3 million across the new Black Sea corridor.
Traders are now also facing delays related to customs documents, because Ukraine is imposing tighter controls on exports to boost revenues to fund its wartime defenses.
The aim would be to export 4 million tons of grain per month through key routes like the Danube, the people said.
Heavy rains hit French grain crop as sowings come to a halt
Heavy rainfall in France over the past two weeks has brought grain sowing virtually to a standstill in the European Union’s largest grain grower and lower yields are to be expected in some regions, technical institute Arvalis said on Tuesday.
Concerns about prospects for the 2024 French harvest have contributed to a rise in European wheat prices BL2c1 this month.
Farmers benefited from very favourable sowing conditions at the start of the planting season, but above-average rainfall in the last ten days of October hampered sowings, Arvalis crop engineer Jean-Charles Deswarte told Reuters.
“In some regions, farmers could not even enter their field because it was so wet,” he said.
Farmers had sown 62% of the expected soft wheat area in France by Oct. 30, compared with 55% a week earlier and a five-year average of 72%, farm office FranceAgriMer said on Friday. The situation was even worse for durum wheat, which was only 10% sown by the same date.
Rainfall was more than 30% above average over a large part of France last month, weather forecaster Meteo France said in a report. It expects showers every day in most grain-growing regions until at least Nov. 21.
The main concern for crops was in the centre and western parts of France, Deswarte said.
“They received a lot of rain over there and since farmers usually sow in the second part of October, they were not able to do much so far. And even if it stopped raining waterlogged soils mean they would not be able to enter the fields for a few days,” Deswarte said.
“This will delay sowings even further and reduce yield potential,” he added.
A one-month delay can cut grain crops’ yield potential by 10% to 20%, he said.
Egypt’s Dollar Shortages Hit One of America’s Top Grain Handlers
Egypt’s shortage of US dollars has hit profits for one of America’s biggest crop handlers.
The Andersons Inc. reported third-quarter earnings Tuesday that fell below analyst expectations, in part due to a currency squeeze in Egypt, the top wheat importer.
The Ohio-based company said it was forced to accept a lower exchange rate, resulting in a pretax loss of $19 million in Egypt.
“While we sell in US dollars, given the unusual currency liquidity issues being experienced by our customers in Egypt, we accepted a lower exchange rate for previously delivered product,” the company said in a statement.
The economic fallout of Russia’s invasion of Ukraine hammered Egypt’s finances, causing a rapid outflow of billions of dollars in foreign funds. The country has devalued its pound three times since early last year.
The lack of dollars is curbing wheat imports. Andersons share slumped 5.9% in after-hours trading.
US Agriculture Sentiment Rises in October: Purdue Univ.
The Purdue University/CME Group’s agricultural sentiment index increased to 110 points in Oct. from 106 in Sept., according to a survey of 400 agricultural producers.
- Current conditions component improved by 3 points from Sept.
- Future expectations up by 5 points
Australia Just Had the Driest October in More Than Two Decades
Australia, a top exporter of wheat, barley and canola, experienced the driest October in more than 20 years and the fifth driest in records going back to 1900 as an El Nino weather pattern continues to bring dry, hot conditions to the country, according to the Bureau of Meteorology.
- That follows the driest September on record. Early that month, the government forecaster estimated wheat output at 25.4 million tons, or 36% less than a year earlier, when the crop was boosted by abundant rains. Dry weather since then may have cut expectations even further. Harvesting of wheat and barley mostly starts in November and lasts through January.
- Rainfall in October was below average for most of Australia, and the driest on record for the key growing region of Western Australia
- The month’s rainfall was 65% below the 1961–1990 average
- Soil moisture was below average (in the lowest 30% of all years since 1911) for much of country, particularly in the south and east
- For November 2023 to January 2024, below median rainfall is likely or very likely (60% to greater than 80% chance) for northern, western, central and southern Australia
Malaysia Unveils Palm Oil Supply Chain Traceability System
Malaysia, the world’s second largest palm oil grower, will roll out a system to facilitate transactional data management along the palm oil supply chain in an effort to improve traceability of the world’s most-used cooking oil.
- The so-called Sawit Intelligent Management System, developed by industry regulator the Malaysian Palm Oil Board, aims to promote self-regulation, reduce government oversight, enhance industry efficiency and improve cost savings, according to Prime Minister Anwar Ibrahim
- “The oil palm industry faces many future challenges including threats, trade issues and climate change,” Anwar said at an industry conference in Kuala Lumpur Wednesday
- “However, I am optimistic that we can overcome these challenges if we continue to work together in harnessing technological breakthroughs and sustainable production.”
- Almost 100% of plantations and mills in Malaysia have been certified sustainable under the Malaysian Sustainable Palm Oil certification scheme
- Government may consider increasing allocation given to the industry for replanting incentives if there is more cooperation between major palm oil planters and smallholders
- Malaysia has set regulations to ensure that its palm oil meets the international food safety standards of importing countries including EU
- The system will be a first step in helping smallholders adhere to regulations under the EU deforestation law, said MPOB Director General Ahmad Parveez Ghulan Kadir separately
Argentine soybean processor Vicentin’s survival in hands of court
Argentine soybean processing giant Vicentin is at risk of going out of business should its bid to secure a $1.3 billion rescue deal fail. The largest soybean processor in Argentina, Vicentin went bankrupt four years ago after failing to make a $350mn payment owed to suppliers and has gone downhill since.
Vicentin is now in a legal battle to get its restructuring deal approved. The deal, led by crop traders Bunge Global SA and Glencore-backed Viterra Inc, was initially rejected, leading to Vicentin approaching an appeals court in the Santa Fe Province to get the original ruling overturned. Should the plan’s rejection be upheld, then Vicentin would be unable to allow Bunge, Viterra, and a local cooperative to use its processing plants, meaning that the soybean processor would lose out on rental income that could prove vital to its survival.
The appeals court is not expected to rule on the rescue deal until after Argentina’s presidential election runoff on November 19.
Mosaic Says Depleted Fertilizer Stocks Signals Brighter Outlook
Global fertilizer stockpiles will need to be replenished next year, boosting the outlook for an industry that’s been battling a slump, according to Mosaic Co.
Excess inventories in agriculture powerhouse Brazil now have been fully worked through, paving the way for stronger sales and profits, the US fertilizer producer said in an earnings statement on Tuesday.
Mosaic, which reported third quarter earnings that trailed analyst expectations, has been been contending with an industry-wide slump. Prices for crop nutrients slumped after a surge in the past two years caused farmers to cut down on use, leaving distributors with a glut.
Mosaic says farmers are now seeking to replenish soil nutrients, leading to a rebound in demand for potash and phosphates at a time when supplies are tight.
“As we look ahead, our outlook is positive,” said Chief Executive Officer Joc O’Rourke. “Demand for our products has rebounded this year, and we expect robust demand through 2024.”
Mosaic said fertilizer supplies should remain limited by sanctions on Belarusian exports, logistical constraints and China’s focus on meeting domestic needs over exports.
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