Global Ag News for Sep 29

TODAY – WEEKLY ENERGY REPORT

Wheat prices overnight are up 4 1/4 in SRW, up 5 1/2 in HRW, up 2 1/2 in HRS; Corn is up 3 1/2; Soybeans up 2 3/4; Soymeal down $0.01; Soyoil up 0.44.

For the week so far wheat prices are down 14 1/4 in SRW, down 10 1/2 in HRW, down 8 3/4 in HRS; Corn is up 8 1/4; Soybeans down 7; Soymeal up $0.08; Soyoil down 0.29. For the month to date wheat prices are down 11 1/2 in SRW, down 1 1/2 in HRW, up 6 1/4 in HRS; Corn is up 1 3/4; Soybeans down 12 3/4; Soymeal down $6.20; Soyoil down 0.85.

Chinese Ag futures (JAN 22) Soybeans up 34 yuan ; Soymeal down 37; Soyoil up 88; Palm oil up 44; Corn down 5 — Malasyian Palm is up 24. Malaysian palm oil prices overnight were up 24 ringgit (+0.54%) at 4471.

Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana Forecast: Scattered showers through Saturday. Temperatures above normal through Friday, near normal Saturday. Mato Grosso, MGDS and southern Goias Forecast: Scattered showers north through Wednesday. Isolated to scattered showers Thursday-Saturday. Temperatures near to above normal through Saturday.

Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires Forecast: Mostly dry Tuesday. Isolated showers Wednesday-Thursday. Mostly dry Friday. Isolated showers Saturday. Temperatures near to below normal Tuesday, near to above normal Wednesday-Thursday, near normal Friday, below normal Saturday. La Pampa, Southern Buenos Aires Forecast: Mostly dry Tuesday. Isolated showers Wednesday-Thursday. Mostly dry Friday. Isolated showers Saturday. Temperatures near to below normal Tuesday, near to above normal Wednesday-Thursday, near normal Friday, below normal Saturday.

Midwest corn, soybean and winter wheat forecasts: West: Mostly dry through Wednesday. Isolated to scattered showers Thursday-Saturday. Temperatures above to well above normal through Saturday. East: Isolated showers east ending Tuesday morning. Mostly dry Wednesday-Friday. Isolated showers west Saturday. Temperatures above normal through Saturday. 6 to 10 day outlook: Isolated to scattered showers Sunday-Thursday. Temperatures above normal Sunday-Thursday.

The player sheet for Sept. 28 had funds: net sellers of 9,000 contracts of  SRW wheat, sellers of 4,500 corn, sellers of 5,000 soybeans, sellers of 1,000 soymeal, and  sellers of 2,500 soyoil.

There were no changes in registrations. Registration total: 1,180 SRW Wheat contracts; 2 Oats; 17 Corn; 1 Soybeans; 365 Soyoil; 1 Soymeal; 1,273 HRW Wheat.

Preliminary changes in futures Open Interest as of September 28 were: SRW Wheat up 2,910 contracts, HRW Wheat up 310, Corn up 1,088, Soybeans down 100, Soymeal down 688, Soyoil up 841.

TENDERS

• CORN SALE: The U.S. Department of Agriculture confirmed private sales of 150,000 tonnes of U.S. corn to Mexico for shipment in the 2021/22 marketing year.
• CORN SALE: Taiwan’s MFIG purchasing group bought about 65,000 tonnes of animal feed corn to expected to be sourced from Brazil in an international tender which closed on Tuesday
• WHEAT SALES: Algeria’s state grains agency OAIC has started purchasing optional-origin milling wheat in an international tender which closed on Tuesday,

PENDING TENDERS

• 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: A government agency in Pakistan issued an international tender to purchase and import 640,000 tonnes of wheat
• WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy 120,000 tonnes of milling wheat which can be sourced from optional origins
• WHEAT TENDER: Algeria’s state grains agency OAIC has issued an international tender to buy milling wheat to be sourced from optional origins
• WHEAT TENDER: A United Nations agency has issued an international tender to purchase about 200,000 tonnes of milling wheat on behalf of the Ethiopian government

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

Output and stockpile projections for the week ending Sept. 24 are based on eight analyst estimates compiled by Bloomberg.

• Production seen higher than last week at 939k b/d
• Stockpile avg est. 20.195m bbl vs 20.111m a week ago

CHS’s La. Export Hub Is Back in Operation After Hurricane Havoc

CHS says its grain export terminal at Myrtle Grove, La., is operational again after Hurricane Ida struck the region late last month.

• A vessel was at the dock of the facility Sept. 24 and Myrtle Grove workers had resumed 24/7 work shifts, the top U.S. farm cooperative said on website
• An auxiliary power plant is still being used to generate electricity; utility power is expected to be restored this week: CHS

Argentina’s 2020/21 soybean sales hit 30.5 mln tonnes -ministry

Argentine farmers have sold 30.5 million tonnes of soybeans from the 2020/21 crop, after registering sales over a seven-day period of 495,300 tonnes, the Ministry of Agriculture said on Tuesday.

• The sales volume of one of Argentina’s main crops lagged that of the previous season, when by the equivalent point some 32.2 million tonnes of the oilseed had been traded, the ministry said in a report with data through Sept. 22.
• The 2020/21 soy harvest in Argentina ended in June at 43.1 million tonnes, according to the Buenos Aires grains exchange, compared with 49 million tonnes in the 2019/20 season.
• The Buenos Aires exchange estimated the coming 2021/22 soy crop, which will start to be sown in October, at 44 million tonnes.
• The ministry also said sales of 2020/21 corn had reached 40.9 million tonnes, 3.7 million tonnes more than sales registered at the same time last year.
• The exchange estimates 50.5 million tonnes of corn were harvested in the 2020/21 season and expects a record 55 million tonne crop for the 2021/22 season. New season corn planting started in September.
• Argentine farmers have sold a total of 7 million tonnes of 2021/22 wheat, with the harvest starting in November, the government said. The Buenos Aires exchange estimates the new wheat crop at 19.2 million tonnes.

Brazil’s Abitrigo says millers won’t buy GMO wheat from Argentina

Brazilian domestic flour millers are threatening to stop buying wheat from Argentina if Brazil commercially approves GMO wheat imports from the neighboring country, Rubens Barbosa, head of the Brazilian Wheat Industry Association (Abitrigo), said on Monday.

Local millers are against processing GMO wheat coming from Argentina or anywhere, according to Abitrigo, and that sentiment is shared by groups representing bakers and other companies that use wheat to make products like bread and biscuits.

Brazil’s biosecurity agency CTNBio is evaluating a request to approve the sale in Brazil of genetically modified wheat produced in Argentina, and a decision on the matter could be taken next week.

Some 80% of Brazil’s wheat imports come Argentina, and the country could increase non-GMO wheat imports from Uruguay, Paraguay and also buy it from the United States, Canada and Russia to avoid Argentina’s GMO wheat if necessary, Barbosa said.

Ukraine 2022 winter wheat sowing 29% complete -ministry

Ukrainian farms had sown 1.95 million hectares of winter wheat for the 2022 harvest as of Sept 27 or 29% of the expected area of 6.68 million hectares, the agriculture ministry said on Tuesday.

Winter wheat accounts for 95% of Ukraine’s total wheat sowing area.

The winter grain sowing area will also include 1.02 million hectares of winter barley and the sowing is 12% complete, it said.

Last year, the autumn drought reduced the area planted with winter grains, and farmers sowed 6.1 million hectares of winter wheat, 954,700 hectares of winter barley and 125,200 hectares of rye for the 2021 harvest.

One of the major grain growers and exporters globally, Ukraine plans to harvest a record 80.6 million tonnes of grain in 2021.

Malaysia Sept. 1-25 Palm Oil Exports to India 312,091 Tons: SGS

• India imported 312,091 tons; +97.5% m/m
• China imported 199,524 tons; +110.6% m/m

Russia Risks Drop in Wheat Planting on Bad Weather and Tax Worry

• Dry summer delayed plantings in some areas, SovEcon says
• Russia’s export tax may also deter farmers from planting more

Russia’s near-record wheat prices may not be enough to stop a drop in plantings that will contribute to a global shortfall of the grain.

A dry summer hampered sowing in parts of Russia, while the uncertainty of a floating export tax introduced this year is deterring farmers from growing more. Consultant SovEcon expects the total winter crops area — the bulk of which is wheat — to fall as much as 1 million hectares (2.5 million acres) this year, the first decline in four years.

In the past two decades, Russia went from being reliant on wheat imports to an export powerhouse due to ever-bigger harvests. But its ranking as the top shipper is at risk following unfavorable weather and President Vladimir Putin’s efforts to contain domestic food inflation, in part by taxing overseas sales.

Even with the export duties, domestic wheat prices are near a record high as some farmers were reluctant to sell from the recent harvest because they’re wary of making bad deals under the tax. The high price isn’t proving enticing enough for bigger plantings this year, with major agricultural producers Steppe Agroholding and Ros Agro Plc saying they’re keeping areas steady.

Appealing prices of other crops like sugar beet and soybeans may also prevent bigger wheat plantings, said Maxim Basov, chief executive officer of Ros Agro, Russia’s third-biggest farming landholder. Steppe plans to plant more crops with higher margins, CEO Andrey Neduzhko said.

Key figures:

• SovEcon sees Russia’s total winter crop area falling between 0.5 million and 1 million hectares, from 20.6 million hectares a year earlier. Wheat makes up about 90% of the area.
• Russian farmers have sown about 50% of winter crops so far, according to SovEcon.
• Winter-crop sowings total 10.5 million hectares so far, down from more than 12m hectares by the same time a year earlier, the Agriculture Ministry said.
• The U.S. government forecasts Russian wheat exports at 35 million tons this season, matching sales from the European Union.