Global Ag News for Sep 8th

Manitoba Harvest Halfway Done

Wheat prices overnight are up 1 3/4 in SRW, up 1 in HRW, down 3/4 in HRS; Corn is up 3 1/2; Soybeans up 8 1/2; Soymeal down $0.10; Soyoil up 0.80.

For the week so far wheat prices are down 4 3/4 in SRW, down 4 1/2 in HRW, down 5 in HRS; Corn is down 9 3/4; Soybeans down 6 1/2; Soymeal down $0.42; Soyoil down 0.44.

For the month to date wheat prices are down 3/4 in SRW, up 6 1/2 in HRW, up 4 in HRS; Corn is down 20; Soybeans down 7; Soymeal down $8.80; Soyoil down 0.19.

Chinese Ag futures (JAN 22) Soybeans down 30 yuan ; Soymeal unchanged; Soyoil down 6; Palm oil up 30; Corn up 7 — Malaysian Palm is up 88. Malaysian palm oil prices overnight were up 88 ringgit (+2.00%) at 4478.

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

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

The player sheet for Sept. 7 had funds: net sellers of 3,500 contracts of  SRW wheat, sellers of 11,000 corn, sellers of 7,000 soybeans, sellers of 1,000 soymeal, and  sellers of 3,000 soyoil.

Preliminary changes in futures Open Interest as of September 7 were: SRW Wheat down 44 contracts, HRW Wheat up 2,130, Corn up 9,975, Soybeans up 2,685, Soymeal up 2,755, Soyoil up 1,677.

There were changes in registrations (-52 Oats). Registration total: 1,180 SRW Wheat contracts; 3 Oats; 0 Corn; 0 Soybeans; 299 Soyoil; 1 Soymeal; 1,275 HRW Wheat.

TENDERS

• WHEAT SALES: The U.S. Department of Agriculture confirmed private sales of 327,300 tonnes of U.S. hard red winter wheat to Nigeria for shipment in the 2021/22 marketing year.
• WHEAT SALES: South Korean flour mills bought an estimated 72,430 tonnes of milling wheat to be sourced from the United States and about 50,000 tonnes from Australia in deals on Friday
• WHEAT TENDER: Egypt’s General Authority for Supply Commodities (GASC) said on Tuesday it was seeking an unspecified amount of wheat from global suppliers for shipment from Oct. 25 to Nov. 3 for payment using 180-day letters of credit. GASC also said that the deadline for offers is Sept. 8.
• FEED WHEAT TENDER: Importers in the Philippines are tendering to purchase an estimated 112,000 tonnes of animal feed wheat
• MILLING WHEAT TENDER: Bangladesh’s state grains buyer has issued another international tender to purchase 50,000 tonnes of milling wheat

PENDING TENDERS

• FEED WHEAT TENDER: An importer in the Philippines is tendering to purchase an estimated 60,000 tonnes of animal feed wheat
• WHEAT TENDER: The Taiwan Flour Millers’ Association issued an international tender to purchase 48,875 tonnes of grade 1 milling wheat to be sourced from the United States
• WHEAT TENDER: Jordan’s state grain buyer has issued a tender to buy 120,000 tonnes of milling wheat that can be sourced from optional origins
• 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 AND CORN TENDER: South Korea’s largest feedmaker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 69,000 tonnes of corn and up to 65,000 tonnes of animal feed wheat.

USDA CROP PROGRESS: Corn Conditions 59% G/E, Soybeans 57%

Highlights from the report:

• Corn 59% G/E vs 60% last week, and 61% a year ago
• Corn dented 74% vs 59% last week, and 77% a year ago
• Corn dough 95% vs 91% last week, and 97% a year ago
• Corn mature 21% vs 9% last week, and 23% a year ago
• Soybeans 57% G/E vs 56% last week, and 65% a year ago
• Soybean drop leaves 18% vs 9% last week, and 18% a year ago
• Spring wheat harvest 95% G/E vs 88% last week, and 80% a year ago
• Winter wheat planted 5% vs 5% a year ago
• Cotton 61% G/E vs 70% last week, and 45% a year ago
• Sorghum 57% G/E vs 58% last week, and 49% a year ago

U.S. Inspected 276k Tons of Corn for Export, 68k of Soybean

In week ending Sept. 2, according to the USDA’s weekly inspections report.

• Soybeans: 68k tons vs 387k the previous wk, 1,513k a yr ago
• Corn: 276k tons vs 583k the previous wk, 888k a yr ago
• Wheat: 382k tons vs 370k the previous wk, 699k a yr ago

U.S. Corn, Soybean, Wheat Inspections by Country: Sept. 2

Following is a summary of USDA inspections for week ending Sept. 2 of corn, soybeans and wheat for export, from the Grain Inspection, Packers and Stockyards Administration, known as GIPSA.

• Total soybean shipments of 68,000 tons were the lowest since 2014
• Mexico was the top destination for corn, soybean and wheat shipments

U.S. grain exports to avoid major disruptions from Ida -agriculture secretary

The United States will likely avoid major disruptions to grain shipments linked to damage from Hurricane Ida at the Gulf Coast, U.S. Agriculture Secretary Tom Vilsack said on Tuesday.

Trade estimates for Statistics Canada crop stocks report

Statistics Canada is scheduled to release its estimates of Canadian crop stocks as of July 31, 2021, on Wednesday, Sept. 8 at 7:30 a.m. CDT (1230 GMT).

Manitoba Harvest Halfway Done But Late-Flowering Canola Hinders

Half of the crops in the key agricultural province have been harvested, but canola regrowth is complicating the process in some fields, Manitoba government says Tuesday.

• Dormant, vegetative canola has begun to bolt and flower in fields that are otherwise ready to be harvested, after much-needed rains followed a drought during the growing season, weekly crop report says
  • Effects are most noticeable in the most severely drought-affected fields
• Soil moisture has rapidly improved in most parts of the province with the top 30 cm (12 inches) “optimal to wet”
  • Subsoil moisture has improved slightly
• Winter wheat, fall rye and field peas are 100% harvested
  • 82% of spring wheat has been harvested, 90% of barley, 83% of field peas
  • 32% of canola has been harvested
• Substantial rains have turned hay and pastureland green, supporting fall grazing

CHS Aims to Boost Soy Oil Production to Meet Booming Demand

Top U.S. farm cooperative CHS plans to boost its production of refined soybean oil to meet robust demand in food and renewable diesel markets.

• CHS announces a $60m expansion project at its Mankato, Minn., soybean processing plant
• When completed, annual soy oil output will increase by more than 35%: co. statement
• Project seen finishing in late summer 2023

Barchart Raises U.S. Crop Production Forecasts and Cuts Canadian Estimates

• U.S. Corn Production – Forecast at 15.4B bu with a yield of 183.6 bu/ac. This compares to the USDA’s 14.8B bu of production and 174.6 bu/ac yield.
• U.S. Soybean Production – Forecast at 4.5B bu with a yield of 51.3 bu/ac. This compares to the USDA’s 4.3B bu of production and 50.0 bu/ac yield.
• U.S. Hard Red Winter Wheat Production – Forecast at 45.5 bu/ac. This compares to the USDA’s yield forecast of 44.5 bu/ac (includes all winter wheat varieties).
• Canadian Spring Wheat Production – Forecast at 773.1M bu with a yield of 47.9 bu/ac. This compares to the AAFC’s 601.1M bu of production and 36.4 bu/ac yield (includes spring wheat and winter wheat, excludes durum wheat).
• Canadian Soybean Production – Forecast at 222.9M bu with a yield of 42.2 bu/ac. This compares to the AAFC’s 220.6M bu of production and 41.5 bu/ac yield.

USDA attache sees China 2021/22 soybean imports at 101 million tonnes

Following are selected highlights from a report issued by the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) post in Beijing:

“Soybean imports are forecast at 101 million metric tons (MMT) in marketing year (MY) 21/22, up 3 MMT from the previous year. The increase is based on growing soybean meal feed use, lower soybean production, and limited imports of rapeseed. Soybean imports for MY20/21 are estimated at 98 MMT, a slight fall from the previous year that is mainly due to decreased pork and poultry profitability. Soybean production for MY21/22 is forecast 0.6 MMT lower than MY 20/21 as farmers switched soybean acreage to corn in response to high corn prices in MY20/21.”

Argentina’s 2020/21 soybean sales reach 28.9 mln tonnes -ministry

Argentine farmers have sold a total 28.9 million tonnes of soybeans from the 2020/21 crop, after registering sales over a seven-day period of 462,300 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 this point some 30.8 million tonnes of the oilseed had been traded, the ministry said in report with data updated through Sep. 1.

The 2020/21 soy harvest in Argentina ended in June at 43.5 million tonnes, according to the Buenos Aires grains exchange, compared with 49 million tonnes in the 2019/20 season.

Soy is a major driver of export dollars needed to replenish central bank foreign currency reserves strained by a three-year recession exacerbated last year by the COVID-19 pandemic.

The ministry said sales of 2020/21 corn had reached 39.2 million tonnes, 3 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, which finished in July.

Argentine farmers have also sold a total of 6 million tonnes of wheat for 2021/22, with the harvest starting in November. The Buenos Aires exchange has estimated the new wheat crop at 19 million tonnes.

India vegetable oil imports seen shrinking for second year -SEA

India’s vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors’ Association of India (SEA) said on Wednesday.

Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year’s 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference.

Palm oil imports, however, could rise 8% from a year ago to 7.8 million tonnes, he said, as India allowed imports of refined palm oil and cut the import tax on crude palm oil

India May Cut Import Tax on Edible Oils Again, Association Says

India may further cut import duties on edible oils, or extend current tax levels, ahead of a peak demand season to shield consumers from high prices, according to B.V. Mehta, executive director of Solvent Extractors’ Association of India.

• India’s edible oil demand remains subdued due to Covid-19 outbreak, Mehta said at an online conference on Wednesday
• Higher prices are also curbing domestic consumption

INDIA’S REFINERS SEEN TO FAVOUR PALM OIL IMPORTS FROM MALAYSIA

India’s refiners are seen to be favouring palm oil imports from Malaysia, as they seem to have been put off by the heavy export tax and levy imposed by Indonesia.

The Solvent Extractors’ Association of India executive director Dr B. V. Mehta said between January and June 2021, the country imported 1.75 million tonnes of Malaysian palm oil compared to 1.72 million tonnes imported from Indonesia.

According to recent reports, Indonesia imposed higher levies on crude palm oil exports in December to raise funds for its ambitious palm-based biodiesel programme, aimed at maximising domestic use of the edible oil.

Ukraine completes 2021 rapeseed harvest at 2.82 mln T

Ukrainian farms have almost completed the 2021 rapeseed harvest, threshing 2.82 million tonnes from 99.7% of the sown area, the agriculture ministry said on Wednesday.

• The yield averaged 2.79 tonnes per hectare, the ministry said in a statement.
• Ukraine harvested 2.6 million tonnes of rapeseed last year and exported most of it.

 Turkey Cuts Custom Tax to Zero for Some Grains, Legume Products

Turkey lifts import taxes until year end for some agricultural goods including some types of wheat, barley, corn, oat, sorghum seeds, lentil and rye, according to decree published in Official Gazette.

• Turkey cuts import tax on coffee from Europe and least developed countries to 6% from 11% until end of this year

Top Green Diesel Maker Widens Used Grease Quest With Latest Deal

• Purchase of U.S.-based firm to help Neste’s Singapore refinery
• Neste focusing on finding new feedstocks, sustainable soy oil

Neste Oyj, the world’s biggest maker of renewable diesel, is looking to add to its arsenal of used cooking oil and discarded animal fats as it seeks to expand its North American supply chain.

The Finnish company plans to buy Minnesota-based Agri Trading, one of the largest independent renewable waste, residue fat and oil traders in the U.S., Jeremy Baines, president of Neste’s North American operations, said in an interview on Tuesday. He didn’t disclose the terms of the planned deal.

Neste, a refiner that began building its biofuel business more than a decade ago, is competing in an increasingly crowded space as fossil fuel giants like Exxon Mobil Corp. jump on the green diesel bandwagon. Neste says the purchase will add to its network of more than 40,000 restaurants in the U.S. and Canada from which it collects used cooking oil to make biofuel. The deal will also improve the company’s ability to ship such raw materials and fuel globally, Baines said.

Euronext to Add Durum Wheat Futures Contract in 4Q

The contract will be listed in Paris and cleared by LCH, subject to regulatory approval, Euronext says in an emailed statement.

• Futures will be cash-settled, with each lot equal to 50 tons
• Sitagri will provide prices for the calculation of exchange delivery settlement price for the contract

U.S. Agriculture Sentiment Rises in August: Purdue Univ.

The Purdue University/CME Group’s agricultural sentiment index increased to 138 points in Aug. from 134 in July, according to a survey of 400 agricultural producers.

• Current conditions component improved by 9 points from July
• Future expectations up by 2 points