Global Ag News for Sep 23
TODAY – EXPORT SALES
Wheat prices overnight are up 5 in SRW, up 6 in HRW, up 4 1/2 in HRS; Corn is down 1 1/2; Soybeans up 5 3/4; Soymeal down $0.12; Soyoil up 0.91.
For the week so far wheat prices are up 2 in SRW, down 1 in HRW, up 7 1/2 in HRS; Corn is down 3 1/4; Soybeans up 4 1/2; Soymeal down $0.16; Soyoil up 1.00.
For the month to date wheat prices are down 11 1/2 in SRW, unchanged in HRW, up 4 1/2 in HRS; Corn is down 10 1/4; Soybeans down 4; Soymeal down $5.00; Soyoil down 1.49.
Chinese Ag futures (JAN 22) Soybeans up 16 yuan ; Soymeal up 5; Soyoil up 140; Palm oil up 210; Corn up 16 — Malasyian Palm is up 115. Malaysian palm oil prices overnight were up 115 ringgit (+2.66%) at 4445 on concerns that a peak production season in second-biggest Malaysia may fall short of expectations.
Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana Forecast: Mostly dry Wednesday. Isolated showers Thursday, north Friday. Mostly dry Saturday-Sunday. Temperatures near to below normal Wednesday-Thursday, near normal Friday, near to above normal Saturday-Sunday. Mato Grosso, MGDS and southern Goias Forecast: Mostly dry Wednesday. Isolated showers in Mato Grosso Thursday-Friday. Scattered showers north Saturday-Sunday. Temperatures near to above normal through Saturday, near to below normal north and near to above normal south Sunday.
Midwest corn, soybean and winter wheat forecasts: West: Mostly dry Wednesday-Thursday. Isolated showers Friday. Mostly dry Saturday-Sunday. Temperatures near to below normal Wednesday-Thursday, near normal Friday-Saturday, above normal Sunday. East: Scattered showers through Thursday. Scattered showers Friday night-Saturday. Mostly dry Sunday. Temperatures near to below normal Wednesday-Thursday, near normal Friday-Saturday, near to above normal Sunday. 6 to 10 day outlook: Mostly dry Monday. Isolated showers east Tuesday-Wednesday. Mostly dry Thursday-Friday. Temperatures above normal Monday-Friday.
The player sheet for Sept. 22 had funds: net buyers of 10,000 contracts of SRW wheat, buyers of 8,500 corn, buyers of 5,500 soybeans, sellers of 0 soymeal, and buyers of 2,000 soyoil.
Preliminary changes in futures Open Interest as of September 22 were: SRW Wheat up 572 contracts, HRW Wheat down 1,366, Corn up 2,807, Soybeans up 5,749, Soymeal up 969, Soyoil up 4,071.
There were no changes in registrations. Registration total: 1,180 SRW Wheat contracts; 2 Oats; 17 Corn; 1 Soybeans; 365 Soyoil; 1 Soymeal; 1,275 HRW Wheat.
- WHEAT TENDER PASSED: Jordan’s state grain buyer, the trade ministry, made no purchase in an international tender to buy 120,000 tonnes of milling wheat which closed on Wednesday
- WHEAT TENDER: A government agency in Pakistan issued an international tender to purchase and import 640,000 tonnes of wheat
- WHEAT TENDER: Algeria probably booked about 250k to 300k tons of durum wheat in a tender that closed Wednesday, seeking supply for November shipment
- WHEAT TENDER UPDATE: Bangladesh’s state grains buyer received the lowest price offer assessed at $421.19 a tonne CIF liner out in an international tender to purchase and import 50,000 tonnes of wheat, which closed on Sept
- WHEAT TENDER: Japan’s Ministry of Agriculture sought 113,067 tonnes of food-quality wheat from the United States and Canada in a regular tender.
- WHEAT FLOUR TENDER: The state purchasing agency in Mauritius issued an international tender to buy 47,000 tonnes of wheat flour to be sourced from optional origins
- WHEAT TENDER: Algeria’s state grains agency OAIC issued an international tender to purchase a nominal 50,000 tonnes of durum wheat
- WHEAT TENDER: The Taiwan Flour Millers’ Association issued an international tender to purchase 49,580 tonnes of grade 1 milling wheat to be sourced from the United States
GRAIN EXPORT SURVEY: Corn, Soy, Wheat Sales Before USDA Report
Estimate ranges are based on a Bloomberg survey of six analysts; the USDA is scheduled to release its export sales report on Thursday for week ending Sept. 16.
- Corn est. range 275k – 800k tons, with avg of 495k
- Soybean est. range 400k – 1,200k tons, with avg of 925k
Biden Eyes Biofuel Cut That May Ease Pressure on Refiners
- Draft EPA proposal would retroactively lower quotas for 2021
- Move would be a blow to makers of ethanol and biodiesel
The Biden administration is preparing to propose cutting biofuel quotas for 2020 and 2021, amid pressure from refining interests and their Democratic allies in Congress, according to several people familiar with the matter.
The Environmental Protection Agency also is on track to propose a modest increase in the amount of plant-based fuels that must be mixed into gasoline and diesel in 2022, under a draft plan now being reviewed by the White House Office of Management and Budget.
Under that draft proposal, the overall renewable fuel requirement for 2020 — previously set at 20.09 billion gallons — would be reduced by as much as 15%, said the people, who asked for anonymity before the measure is announced. The proposed target for 2021 would also drop under the draft, though a modest increase is planned for 2022.
Biofuel Stocks Fall to Session Low on Report of Blending Cuts
Biofuel stocks dip to session low after Reuters reported the EPA is proposing big cuts to the nation’s biofuel blending requirements for the years 2020, 2021 and 2022.
- BG -1%, DAR -2.7%, REGI -3%
- Refiners gain including PBF +8%, CVI +6%
DOE: U.S. Ethanol Stocks Rise 0.5% to 20.111M Bbl
According to the U.S. Department of Energy’s weekly petroleum report.
- Analysts were expecting 20.014 mln bbl
- Plant production at 0.926m b/d, compared to survey avg of 0.941m
India’s oil palm imports to drop 9% in 2021/22 -analyst
India’s palm oil imports in 2021/22 are likely to drop 9% from a year earlier on a rise in domestic supplies as farmers expand the area planted with oilseeds in response to record high prices, a leading industry analyst told Reuters.
Palm oil imports in the new marketing year from Nov. 1 could fall to 7.6 million tonnes from 8.35 million this year, Govindbhai Patel, managing director of trading firm G.G. Patel & Nikhil Research Company, said on Thursday.
Argentina says it will appeal U.S. ruling on biodiesel duties
Argentina’s government said on Wednesday it would appeal a ruling by the U.S. Court of International Trade to deny its challenge over high duties on imports of biodiesel from the South American country, one of the world’s top producers.
The U.S. court on Tuesday rejected a motion for judgment from Argentina’s government and LDC Argentina challenging steep levies imposed since early 2018 after a commerce ministry probe into allegations of state subsidies and dumping, which in effect shut off access for Argentine exporters to the U.S. market.
Brazil Scraps Tax Rates on Corn Imports
Provisional Measure scraps PIS, Pasep and Cofins taxes until Dec. 31, according to statement from Economy Ministry.
- Decision is justified by the need to increase corn imports due to shortages in domestic market caused by weather problems, delays in summer harvest and sowing of the winter crop, and by low stocks
- Waiver of the revenue from those taxes will be offset by the increase in financial transactions tax announced on Sept. 16
Vietnam Plans to Reduce Tariffs on U.S. Ethanol and Corn
Vietnam’s agricultural ministry officials will meet with the U.S. Grains Council Sept. 22 in Washington to sign memorandum of understanding to foster Vietnam’s feed sector and production and use of biofuels in the country and increase access to Vietnam’s market for American products, according to information from the Vietnamese ministry.
Agreement will include reductions of Vietnamese import tariffs on U.S. ethanol and corn.
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