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April 21, 2017 | Global Ag News Highlights

USDA Agency Reports    

Overnight trade has all Wheat prices up roughly 1 cent to unchanged; Corn unchanged; Soybeans up 2 cents; Soymeal up $1.50; and; Soyoil down 5 points. The U.S. dollar was slightly higher; crude oil is unchanged but set for a weekly loss and its worst performance since March 10. 

For the week, all Wheat prices are down roughly 3 to 24 cents, corn down 14 cents, soybeans down 8, soymeal down $9.00, and soyoil up 65 points (July crushing margins down 5 cents). 

Chinese Ag futures were up 4 yuan for soybeans, up 13 in corn, down 6 in soymeal, up 14 in soyoil, and up 26 yuan in palm oil. Malaysian palm oils ended up 24 ringgit at 2528, basis July, on a weaker-than-expected rise in production. 

The player sheet had funds net sellers of 9,000 contracts of SRW Wheat on the day ; sold 10,000 Corn; sold 5,000 contracts of Soybeans; net sold 4,000 lots of soymeal, and; net bought 5,000 lots of soyoil. 

We estimate Managed Money net short 152,000 contracts of SRW Wheat; net short 175,000 Corn; net short 27,000 Soybeans; net long 1,000 lots of Soymeal, and; net short 39,000 Soyoil.  

Prelim Open Interest saw SRW Wheat up roughly 16,200 contracts; Corn up 22,300; Soybeans down 4,200 contracts; Soymeal down 1,300 lots, and; Soyoil up 790. 

There were no changes in registrations------Registrations totaled 576 contracts for SRW Wheat; 1 Oat; Corn ZERO contracts; Soybeans 605; Soyoil 3,761 lots; Soymeal 303; HRW Wheat 911, and; HRS Wheat 870 contracts. 

In tender activity, South Korea’s KFA feed group seeks up to 130,000t optional-origin corn--------Turkey seeks up to 44,000t EU/Moldovian corn------ South Korea's feed group NOFI purchased 203,000 tons of corn to be sourced from optional origins. 

U.S. generation of renewable fuel blending credits rose in March from February, data from the Environmental Protection Agency (EPA) showed-----some 1.28 billion renewable fuel (D6) blending credits were created last month, versus 1.16 billion in February------------for biodiesel, 275 million credits were generated in March versus 215 million in February----------the credits are used by oil refiners and importers to show compliance with EPA-mandated ethanol blending quotas for petroleum-based fuels; they are created with every gallon of biofuel produced. 

Weekly broiler-type eggs set in the United States was up 3%, broiler-type chicks placed in the United States up 2%  versus the comparable week a year ago. 

 

Oilseeds industry group Abiove raised Brazil's 2016/17 soybean output forecast to 110.7 million tons, a 3.2 rise from an estimate released in March; Abiove also raised Brazil's soybean export forecast to 60.3 million tons, a slight 0.8 percent increase from the previews estimate. 

Brazilian farmers should produce a record 2016-17 corn crop of 93.2 million tons this year, a Reuters poll indicated, above the 89.6 million tons expected in a previous survey; corn output will be boosted by a record second corn crop (winter crop) seen by market analysts surveyed by Reuters at 63 million tons-----------Soy production in 2016-17 is expected to reach 110.8 million tons compared to 106.8 million tons in a previous poll. 

Port workers in Argentina's main grains hub of Rosario will hold flash protests and block access gates over the weeks ahead as part of wage negotiations in which they are demanding a 40 percent pay increase. 

Wire story reports the Black Sea region and east European countries are in coming years likely to further expand their rapid growth of wheat exports; an estimated 40 percent of the world wheat export trade is currently held by Russia, Ukraine, Kazakhstan and countries along the Danube river after a surge in sales in recent years. 

European Union soft wheat exports in the 2016/17 season had reached 19.6 million tons by April 18, down 19 percent from 24.1 million exported by the same point last season; in the latest reporting week, the EU exported 346,000 tons of soft wheat, on the basis of a revised week-earlier total of 19.25 million ton

-----The European Union this week awarded 11,644 tons of wheat imports under preferential-tariff quotas; the EU granted 7,874 tons of wheat imports under reduced-tariff quotas open to various origins, along with 3,670 tons of Ukrainian wheat imports under an annual duty-free quota.

-----EU maize imports were 9.3 million tons, down 18 percent

-----European Union soybean imports in the 2016/17 season had reached 10.6 million tons by April 18, down 6 percent from 11.3 million at the same stage last season

----------in soymeal, cumulative EU imports so far in 2016/17 were 14.2 million tons, down 13 percent from 16.4 million a year ago

----------Palm oil imports stood at 4.5 million tons, down 17 percent from 5.5 million tons a year earlier

 

Dry weather in top European grain producer France is raising concern over this year's grain crops, with experts and analysts saying rainfall is needed soon to avoid damage; a cold snap in most of Europe this week, meantime, is expected to have little impact on cereals; France harvested its worst wheat crop in three decades last year, mainly due to heavy rainfall in the spring, and fears are rising of a repeat this year for opposite reasons; if it does not rain in the coming weeks, the consequences on yields will be major and the situation will then become very complicated for the whole chain, mainly producers. 

The condition of the French wheat crop declined last week, marking a second successive weekly fall, farm office FranceAgriMer said, suggesting a persisting dry spell was starting to affect crops; warm, dry weather in the past month has raised concern about low moisture levels in France after a very dry winter; FranceAgriMer estimated that 85 percent of soft wheat crops were in good or excellent condition as of April 17, compared with 89 a week earlier------for corn, farmers had sown 57 percent of the expected area by April 17, up from 31 percent a week earlier and well ahead of the 9 percent progress seen at the same date last year. 

Selected highlights from a report issued by a U.S. Department of Agriculture attache in Australia------------Australian winter crop production is forecast to decline significantly in 2017/18 due to less favorable seasonal conditions and in response to low world prices-------Post forecasts wheat production at 24 million MT in 2017/18, down from a record 35 million MT in 2016/17; exports of wheat have been affected by a range of transport and logistical problems, and exports for 2016/17 have been revised down by Post-----------Sorghum production is expected by Post to fall to 0.8 million MT in response to an expected switch to alternative crops.