Global Ag News for Aug 23.24

TOP HEADLINES

China provides emergency food assistance to Zimbabwe amid El Nino-induced drought

China on Thursday provided emergency food assistance to Zimbabwe to assist the southern African country in tackling widespread food insecurity due to the effects of an El Nino-induced drought.

Chinese Ambassador to Zimbabwe Zhou Ding handed over the 1,760 metric tons of rice to Zimbabwean President Emmerson Mnangagwa at a ceremony at the State House in Harare, the capital of Zimbabwe.

Thursday’s handover event was also attended by several Zimbabwean government ministers and senior officials, as well as representatives of beneficiary institutions.

Speaking at the handover ceremony, Mnangagwa expressed his gratitude to the Chinese government for the generous donation.

“Each time when we have this problem of food insecurity, China has always come to our aid,” said the president, adding that the donated food will be distributed to the most vulnerable members of the community, including orphanages, institutions that care for elderly persons and people living with disabilities.

“As a result of the El Nino-drought, the food insecurity not only in Zimbabwe but in the region is actually prevalent, but we believe that we shall continue to receive assistance and cooperation from our cooperating partners as well as our sister republics like the People’s Republic of China, who have always stood by us when we are faced with challenges of this nature. We are very grateful,” he said.

 

FUTURES & WEATHER

Wheat prices overnight are down 4 in SRW, down 3 1/4 in HRW, down 3 1/4 in HRS; Corn is down 1/4; Soybeans up 3 3/4; Soymeal down $1.00; Soyoil up 0.57.

For the week so far wheat prices are down 18 3/4 in SRW, down 12 1/4 in HRW, down 26 1/4 in HRS; Corn is up 1/2; Soybeans up 7 3/4; Soymeal up $1.20; Soyoil up 0.69.

For the month to date wheat prices are down 20 1/2 in SRW, down 24 in HRW, down 20 1/4 in HRS; Corn is down 6 1/2; Soybeans down 57 1/4; Soymeal down $12.60; Soyoil down 2.77.

Year-To-Date nearby futures are down 18.9% in SRW, down 17.9% in HRW, down 21.9% in HRS; Corn is down 21.2%; Soybeans down 26.9%; Soymeal down 20.9%; Soyoil down 14.9%.

Chinese Ag futures (NOV 24) Soybeans down 6 yuan; Soymeal down 21; Soyoil down 2; Palm oil up 54; Corn up 3 — Malaysian Palm is up 41.

Malaysian palm oil prices overnight were up 41 ringgit (+1.07%) at 3867.

There were changes in registrations (-35 Soyoil). Registration total: 424 SRW Wheat contracts; 6 Oats; 15 Corn; 10 Soybeans; 439 Soyoil; 0 Soymeal; 0 HRW Wheat.

Preliminary changes in futures Open Interest as of August 22 were: SRW Wheat up 10,913 contracts, HRW Wheat down 906, Corn down 13,987, Soybeans up 2,397, Soymeal down 521, Soyoil down 1,286.

 

Northern Plains: Multiple disturbances continue to bring scattered showers into next week, which may produce some unneeded rainfall to mature wheat areas and overly wet corn and soybean areas. Loss of quality and delays to harvest will be possible for wheat. The region will get cooler and drier after a system passes through midweek.

Central/Southern Plains: It remains hot in Texas while other areas have had a bit of a break. Temperatures will start to rise Friday and likely last into next week, which may cause stress. Only isolated showers are forecast into next week, which could be a stressful combination for those that are hot and dry. A system will move through later next week that could bring some needed rainfall and a burst of cooler air.

Midwest: Temperatures are mild but a warm front lifting into the region will cause them to rise this weekend. The front may produce a few showers, with areas around Illinois and Missouri currently being favored. Otherwise, dry conditions continue for most areas with soil moisture dropping for filling corn and soybeans. A small front will move into the region early next week that may produce some showers. But chances are better later next week with a much stronger system rolling through. That should produce needed rainfall as well as bring in some cooler temperatures.

Delta: Many areas have been dry for weeks, with hot temperatures creating stressful conditions for many of the region’s filling soybeans and cotton crops. Temperatures have been milder for the last couple of days, but will rise again this weekend. Very little precipitation is forecast for the next week, continuing the stress.

Canadian Prairies: Disturbances moving through the region will bring additional showers through the middle of next week, when a stronger system could bring more widespread precipitation as well as a burst of cooler air. Maturing wheat and canola could use some dry conditions for harvest. The rain could be heavy in small locations, which could reduce quality and delay harvest.

Europe: Recent showers were favorable for southern areas, especially when dealing with recent heat, but not for northern areas that have been very wet this year. Another system will push into the west this weekend, but precipitation is now forecast to dry up as it moves eastward next week. Temperatures are hot in the southeast. Heat will return to more areas this weekend into next week, being stressful in the south where soil moisture is lower.

Black Sea: Drought continues to increase across eastern Ukraine and southwestern Russia. Other areas in the region have better conditions for filling corn and sunflowers. Limited showers are possible the next couple of days, but a longer dry stretch is forecast through next week. Temperatures remain hot and stressful as well. Constant heat and dryness has been damaging to crops in much of the region this season.

 

The player sheet for Aug. 22 had funds: net sellers of 3,500 contracts of SRW wheat, sellers of 5,000 corn, sellers of 8,500 soybeans, sellers of 3,000 soymeal, and sellers of 2,500 soyoil.

TENDERS

• SOYBEAN, SOYMEAL, CORN SALES: Exporters struck deals to sell 198,000 metric tons of U.S. soybeans to China; 105,000 metric tons of U.S. soymeal to Vietnam; 110,490 metric tons of U.S. corn to Mexico; and 132,000 metric tons of U.S. corn to unknown buyers for delivery in 2024/25, the U.S. Department of Agriculture said. It was the fourth consecutive day that USDA confirmed soy sales to China in its daily reporting system.
• WHEAT PURCHASE: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) bought 81,442 metric tons of food-quality wheat from the United States and Canada in a regular tender.
• WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy up to 120,000 metric tons of milling wheat that can be sourced from optional origins.
• BARLEY TENDER: Jordan’s state grains buyer issued an international tender to purchase up to 120,000 metric tons of animal feed barley.

PENDING TENDERS

• CORN TENDER: South Korea’s Major Feedmill Group (MFG) has issued an international tender to purchase up to 70,000 metric tons of animal feed corn to be sourced from either South America or South Africa only
• CORN, SOYMEAL, BARLEY TENDERS: Algerian state agency ONAB issued international tenders to purchase up to 120,000 metric tons of animal feed corn, 40,000 tons of soymeal, and 35,000 tons of feed barley.

 

 

 

TODAY

US Sold 1.63M Tons of Soybeans Last Week; 1.41M of Corn: USDA

USDA releases net export sales report on website for week ending Aug. 15.

• Corn sales rose to 1,410k tons vs 921k in previous week
• Soybean sales rose to 1,633k tons vs 1,566k in previous week
• All wheat sales rose to 493k tons vs 273k in previous week

 

US Export Sales of Soybeans, Corn and Wheat by Country

The following table shows US export sales of soybeans, corn and wheat by biggest net buyers for week ending Aug. 15, according to data on the USDA’s website.

• Top buyer of soybeans: China with 874k tons
• Top buyer of corn: Mexico with 896k tons
• Top buyer of wheat: Philippines with 116k tons

 

US Export Sales of Pork and Beef by Country

The following table shows US export sales of pork and beef product by biggest net buyers for week ending Aug. 15, according to data on the USDA’s website.

• Mexico bought 4.7k tons of the 19.6k tons of pork sold in the week
• Japan led in beef purchases

 

CROP TOUR: Data Summary After Day Three

On Thursday at 9pm ET, Pro Farmer is set to release estimates for Minnesota and all of Iowa

 

CROP TOUR: Corn Yields Seen Up in Iowa, Down in Minnesota

Corn yields in Iowa avg 192.8 bu/acre, according to 481 samples taken by participants on the Pro Farmer Midwest Crop Tour.

• That’s above tour avg of 182.8 bu/acre last year and three-year avg is 185.8
• Iowa soybean pod count in 3-by-3-foot square avg 1,312.3 pods, according to 475 samples
  • That’s up from 1,191.4 pods last year and 1,194.2 three-year avg
  • NOTE: Tour doesn’t project soybean yields

MINNESOTA

• Minnesota crop tour corn avg 164.9 bu/acre, according to 211 samples
  • That’s a decline from 181.3 last year and three-year avg of 183.1
• Minnesota soy pod count is 1,036.6, according to 210 samples
  • That’s up from 985 last year but down from three-year avg 1,037.7
• NOTE: Thursday was fourth day of tour and last day of field measurements; final Pro Farmer yield estimates will be released Friday

 

Argentine Corn Production Estimate Aug. 22: Exchange

The Buenos Aires Grain Exchange releases weekly report on website.

• Corn production estimate maintained at 46.5m tons
• Corn harvesting progressed slightly to 98.7% complete
• Rains helped wheat plants in central-southern regions

 

Argentine rains boost wheat but delay sunflower planting

Argentina’s current wheat season should continue to improve thanks to recent rainy days, the Buenos Aires grains exchange said in a report on Thursday, though the wet weather slowed the start of the country’s sunflower campaign.

The South American nation is a major world supplier of wheat and has planted some 6.3 million hectares (15.6 million acres) for the 2024/25 season. The harvest is set to begin in November.

“Crop conditions in the south and center of the agricultural area are expected to keep improving after rains this week and last,” the exchange said, adding they should benefit from a fresh fertilization push.

But a lack of rain and frosty cold fronts could risk conditions in the northwest of the farming heartlands, it warned.

Meanwhile, the recent rains have slowed the final harvests of the 2023/24 corn crop, which is 98.7% complete, the exchange said.

Argentina is the world’s third-largest corn exporter and the exchange expects this season to produce some 46.5 million metric tons. It is also a major world exporter of sunflower oil.

Farmers last week began planting an expected 1.85 million hectares of the 2024/25 sunflower crop, the exchange said.

Sunflower sowing began after several weeks of delays and is some 9.5 percentage points behind the historic average for this point in the season, it noted, due to the recent wet weather.

 

US Miss. River Grain Shipments Fall, Barge Rates Increase: USDA

Barge shipments down the Mississippi river declined to 706k tons in the week ending Aug. 17 from 791k tons the previous week, according to the USDA’s weekly grain transportation report.

• Barge shipments of corn rose 11.8% from the previous week
• Soybean shipments down 42% w/w
• St. Louis barge rates were $21.11 per short ton, an increase of $6.06 from the previous week

 

LIVESTOCK: US Red Meat Production Rose 10.3% Y/y in July

Commercial beef and pork production rose to 4.55b pounds in July, according to the USDA’s monthly livestock slaughter report.

• Beef production up 8.5% y/y to 2.29b pounds
• July cattle slaughter totaled 2.72m head, a 4.8% increase from a year ago
  • Avg live weight rose by 36 pounds from last year to 1,380 pounds
• Pork production up 12.2% y/y to 2.25b pounds
• Hog slaughter increased 11.1% y/y to 10,680m head
  • Avg live weight was 283 pounds vs 281 pounds a year ago

 

US Poultry Slaughter Rose 8.2% Y/y in July: USDA

Slaughter rose to 6 billion pounds, according to the USDA’s monthly poultry slaughter report released on the agency’s website.

• Chicken live weight rose 9.2% in July from year ago
• Chickens condemned post-mortem up 7.4% y/y
• Condemned ante-mortem up 1.1% y/y

 

US Crops in Drought Area for Week Ending Aug. 20: USDA

The following shows the percent of US agricultural production within an area that experienced drought for the week ending Aug. 20, according to the USDA’s weekly drought report.

• Corn crops experiencing moderate to intense drought edged up by a percentage point to 7%
• Soybean crops rose by a point to 8%

 

 

 

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