Global Ag News for Aug 10
Paraguay Truckers Strike, Low Rivers Slow Soy Exports
Wheat prices overnight are up 1 1/4 in SRW, up 1/2 in HRW, up 1/2 in HRS; Corn is down 6 1/4; Soybeans up 6 1/4; Soymeal up $0.21; Soyoil up 0.34.
For the week so far wheat prices are down 7 1/4 in SRW, down 3 3/4 in HRW, down 7 in HRS; Corn is down 9; Soybeans down 3/4; Soymeal up $0.39; Soyoil down 0.99.
For the month to date wheat prices are up 8 3/4 in SRW, up 28 3/4 in HRW, up 4 1/2 in HRS; Corn is up 2 1/4; Soybeans down 13 1/4; Soymeal up $7.70; Soyoil down 2.76.
Chinese Ag futures (SEP 21) Soybeans down 25 yuan ; Soymeal up 18; Soyoil up 16; Palm oil up 8; Corn down 18 — Malasyian Palm is down 74. Malaysian markets are closed for Holiday.
Midwest corn, soybean and winter wheat forecasts: West: Isolated to scattered showers through Friday. Temperatures above normal through Thursday, near normal Friday. East: Isolated to scattered showers through Friday. Temperatures above normal through Thursday, near to above normal Friday. 6 to 10 day outlook: Mostly dry Saturday-Monday. Isolated showers Tuesday-Wednesday. Temperatures near to below normal Saturday-Sunday, near to above normal northwest and near to below normal southeast Monday-Tuesday, near to above normal Wednesday.
The player sheet for Aug. 9 had funds: net sellers of 4,000 contracts of SRW wheat, sellers of 2,000 corn, sellers of 3,500 soybeans, buyers of 1,500 soymeal, and sellers of 5,500 soyoil.
Preliminary changes in futures Open Interest as of August 9 were: SRW Wheat up 1,957 contracts, HRW Wheat up 2,953, Corn down 11,548, Soybeans up 481, Soymeal up 1,265, Soyoil down 3,908.
There were changes in registrations (-43 Soyoil). Registration total: 0 SRW Wheat contracts; 0 Oats; 0 Corn; 0 Soybeans; 345 Soyoil; 155 Soymeal; 1,288 HRW Wheat.
- SOYBEAN SALE: Private exporters reported the sale of 104,000 tonnes of soybeans to unknown destinations for delivery in the 2021/22 marketing year, the U.S. Agriculture Department said.
- WHEAT TENDER: A South Korean flour mill bought an estimated 135,100 tonnes of wheat to be sourced from the United States, Canada and Australia in a tender which closed on Friday
- WHEAT TENDER: Jordan’s state grain buyer issued a tender to buy 120,000 tonnes of milling wheat which can be sourced from optional origins.
- WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat
- WHEAT TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said it will seek 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by Nov. 30 and arrive in Japan by Jan. 27, via a simultaneous buy-and-sell (SBS) auction that will be held on Aug. 18. (Full Story)
- WHEAT TENDER: A government agency in Pakistan issued an international tender to purchase and import 400,000 tonnes of wheat
- SOYBEAN TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp. has issued an international tender to purchase around 3,700 tonnes of soybeans free of genetically-modified organisms (GMOs)
USDA CROP PROGRESS: Corn Conditions 64% G/E, Soybeans 60%
Highlights from the report:
- Corn 64% G/E vs 62% last week, and 71% a year ago
- Corn dented 8% vs 10% a year ago
- Corn dough 56% vs 38% last week, and 56% a year ago
- Corn silking 95% vs 91% last week, and 96% a year ago
- Soybeans 60% G/E vs 60% last week, and 74% a year ago
- Soybeans blooming 91% G/E vs 86% last week, and 91% a year ago
- Spring wheat 11% G/E vs 10% last week, and 69% a year ago
- Spring wheat harvest 38% G/E vs 17% last week, and 14% a year ago
- Winter wheat harvest 95% vs 91% last week, and 89% a year ago
- Cotton 65% G/E vs 60% last week, and 42% a year ago
- Sorghum 63% G/E vs 62% last week, and 58% a year ago
U.S. Inspected 667k Tons of Corn for Export, 114k of Soybean
In week ending Aug. 5, according to the USDA’s weekly inspections report.
- Corn: 667k tons vs 1,397k the previous wk, 1,313k a yr ago
- Soybeans: 114k tons vs 185k the previous wk, 843k a yr ago
- Wheat: 606k tons vs 405k the previous wk, 477k a yr ago
Paraguay Truckers Strike, Low Rivers Slow Soy Exports: Chamber
Paraguay’s low water levels in key rivers and a truckers strike that is stretching into its second week are disrupting soybean exports, Hugo Pastore, executive director of grain and oilseed export chamber Capeco, said in an interview.
- Paraguay still has just over 1m tons of soybeans left to ship from ~9.5m tons harvested in 2021
- Strike has halted soy shipments to Brazil, while some crushing mills might have to suspend activity as soon as this week if truckers don’t return to work
- Paraguay River ports are handling soy exports to Argentina, other markets with some stretches of the Parana River “unnavigable“
- Barges are operating at 65%-70% capacity, with voyages to Argentina taking as long as 20 days
- Dredging will mitigate low water levels, but isn’t a solution to the lack of rain upstream
- “At least it guarantees that things won’t get any worse and that navigation would be a little more predictable:” Pastore
- Soy farmers will plant 3m to 3.2m hectares for the first harvest of the 2021-22 season: Pastore
- Truckers strike is also slowing farm supply delivers ahead of September start to soy planting
- Winter frosts will probably reduce upcoming wheat, corn harvests to about 700k tons, 2.5m tons, respectively
Brazil C-S Winter Corn Harvest at 58% as of Aug. 5: AgRural
Compares with 49% a week earlier, and 70% a year before, AgRural said in an emailed report.
- Harvest advances as moisture levels in seeds fall; low temperatures have slowed down the process
- Harvest is closer to conclusion in Mato Grosso state, although yields have dropped in latest areas
UAC Raises Ukraine Wheat Production, Export Estimates by 1m Tons
Ukraine’s 2021 wheat harvest is now seen at 30.5m tons, up from a prior estimate of 29.5m tons, Kyiv-based researcher UkrAgroConsult said in a report.
- Increase reflects the latest government plantings data
- Wheat exports seen at 21.8m tons in the 2021-22 season, up from 20.8m tons
- Corn production estimate also raised by 1m tons, to 38.2m tons, and exports are seen at 31.7m tons
INDIA TO SPEND US$1.4 BLN ON GROWING EDIBLE OIL PRODUCTION
India will spend more than US$1.4 billion on growing its edible oil production as the country seeks to cut its reliance on imports.
Prime Minister Narendra Modi said on Monday the amount will be invested “in the cooking oil ecosystem” through a national scheme that aims to expand oilseed farming and oil palm plantations. The government “will ensure that farmers get all the facilities, from quality seeds to technology”, he said.
Modi said as a major exporter of agricultural commodities, it was important for India to become self-reliant in edible oil, noting that palm oil’s share in vegetable oil imports was more than 55 per cent. India imported 13.35 million tonnes of edible oil during its fiscal year 2020-21 while its total consumption was 25.82 million tonnes, according to government data.
Wheat ships queue at French port as rain hits harvest logistics
Ships have been waiting for up to a month at France’s biggest grain port to load wheat for Algeria as a rain-hit harvest has forced exporters to compete for a trickle of supply and reinforce quality checks to meet milling standards.
Heavy rain in France, the European Union’s largest wheat producer, has added to worries about global export supplies as harvest prospects have also deteriorated in North America and Russia.
An earlier start to barley harvesting allowed firms to dispatch several barley cargoes to China in July. But delays to wheat harvesting prevented the completion last month at Rouen of any loadings for Algeria – France’s biggest wheat export market, Refinitiv and other shipping data showed. Just two vessels of French wheat were loaded for Algeria in July, at the west coast port of La Pallice, including one rerouted away from Rouen, the data showed.
Malaysia Aug. 1-10 Palm Oil Exports -12.82% M/m: Intertek
Malaysia’s palm oil exports fell 12.82% m/m during Aug. 1-10, according to Intertek Testing Services.
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