Global Ag News for Dec 27.24

TOP HEADLINES

Fire at Tyson Foods poultry plant in Georgia kills one, company says

A fire overnight at a Tyson Foods poultry plant in Camilla, Georgia, killed one person and injured several others, the company said in a statement on Friday.

Tyson, the biggest U.S. meat company by sales, is working closely with local authorities to determine the cause of the fire, the statement said.

“Right now we are still gathering the facts,” a Tyson spokesperson said in the statement, adding, “we are conducting a full investigation into the cause of the fire.”

A poultry workers’ union said one person had been pinned under debris following a boiler explosion that occurred at the Camilla facility between 11 p.m. and 12 a.m. EST.

Additionally, several union members were “severely burned,” Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union (RWDSU), said in a statement. The union said it represents more than 15,000 poultry workers in the southern United States, including about 1,600 workers at the Tyson facility in Camilla.

A rebound in Tyson’s chicken business helped the company to beat Wall Street expectations for its fourth-quarter earnings in November, offsetting losses in beef.

Tyson has closed six U.S. chicken plants since the start of 2023, as well as an Iowa pork plant and a beef and pork plant in Emporia, Kansas, laying off thousands of workers.

 

FUTURES & WEATHER

Wheat prices overnight are up 1 1/4 in SRW, up 1 1/2 in HRW, up 3/4 in HRS; Corn is up 1 3/4; Soybeans up 4; Soymeal up $3.80; Soyoil down 0.09.

Markets finished last week with wheat prices up 14 3/4 in SRW, up 11 1/4 in HRW, up 5 3/4 in HRS; Corn is up 9 1/2; Soybeans up 14 1/2; Soymeal up $12.00; Soyoil up 0.02.

For the month to date wheat prices are down 1/4 in SRW, up 15 1/4 in HRW, up 4 1/4 in HRS; Corn is up 22 3/4; Soybeans down 2 1/4; Soymeal up $16.70; Soyoil down 2.16.

Year-To-Date nearby futures are down 12.8% in SRW, down 13.4% in HRW, down 17.6% in HRS; Corn is down 3.3%; Soybeans down 23.9%; Soymeal down 21.1%; Soyoil down 17.5%.

Chinese Ag futures (MAY 25) Soybeans down 5 yuan; Soymeal down 4; Soyoil down 14; Palm oil down 10; Corn up 8 — Malaysian Palm is down 72.

Malaysian palm oil prices overnight were down 72 ringgit (-1.56%) at 4552.

There were no changes in registrations. Registration total: 20 SRW Wheat contracts; 72 Oats; 17 Corn; 150 Soybeans; 879 Soyoil; 1,665 Soymeal; 105 HRW Wheat.

Preliminary changes in futures Open Interest as of December 27 were: SRW Wheat down 183 contracts, HRW Wheat down 611, Corn down 1,912, Soybeans down 14,571, Soymeal down 30,188, Soyoil up 773.

 

Brazil: Widespread wet season showers continue in central Brazil, favorable for filling soybeans. Showers across the south are more sparse than farther north, but are coming at a regular pace to thwart off too many concerns for either full-season corn or filling soybeans. Below-normal rainfall may cause some minor issues in spots, however.

Argentina: It was largely dry through the weekend and soil moisture is falling. Though systems are coming through, they are doing so with spotty rainfall amounts, leading to some areas getting missed for several weeks on end and creating some dry patches for pollinating corn. With how drawn out the growing season is, though, patchy areas of dryness are not a large concern just yet. However, the forecast calls for below-normal rainfall through at least the middle of January, which may lead to bigger concerns down the line.

Northern Plains: Warm, but largely quiet conditions dominated over the weekend. A system will move across the south with snow on Monday and a round of cooler air. Another system will likely move through southern areas this weekend with more snow followed by a burst of colder air that is likely to last next week, being very cold for livestock. Drought continues to be a major concern this winter.

Central/Southern Plains: A system moved through southeastern areas with heavier rain and some severe weather over the weekend, but southwestern areas remained drier. Soil moisture is falling in these areas, but drought has not set in yet. A system will go through northern areas on Monday with moderate precipitation and another system is forecast to bring widespread moderate precipitation this coming weekend that should be helpful. However, it will come as a mix of precipitation types which may be hazardous, and be followed by a burst of cold air for next week.

Midwest: Scattered showers went through over the weekend. A system will bring a mix of rain and snow to the region Monday and Tuesday, with some lake-effect snow lingering on Wednesday. Another system is forecast to move through Sunday and Monday of next week, followed by a burst of very cold air that should linger for a while. Areas without adequate snow cover could see some winter kill on wheat.

Lower Mississippi: Water levels remain above the low-water mark on most of the system, allowing for easier transportation. Active weather with a system moving through this week and another moving through early next week should keep water levels elevated. 

 

The player sheet for Dec. 27 had funds: net buyers of 2,500 contracts of SRW wheat, buyers of 3,000 corn, buyers of 3,500 soybeans, sellers of 3,000 soymeal, and buyers of 500 soyoil.

TENDERS

• FEED BARLEY TENDER: Jordan’s state grains buyer has issued an international tender to purchase up to 120,000 metric tons of animal feed barley.
• RICE TENDER: Bangladesh’s state grains buyer has issued another international tender to purchase 50,000 metric tons of rice.

 PENDING TENDERS

• RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 metric tons of rice.

 

 

 

 

TODAY

US Export Sales of Soybeans, Corn and Wheat by Country

The following shows US export sales of soybeans, corn and wheat by biggest net buyers for week ending Dec. 19, according to data on the USDA’s website.

• Top buyer of soybeans: China with 411k tons
• Top buyer of corn: Mexico with 609k tons
• Top buyer of wheat: Mexico with 145k tons

 

US Export Sales of Pork and Beef by Country

The following shows US export sales of pork and beef product by biggest net buyers for week ending Dec. 19, according to data on the USDA’s website.

• Mexico bought 22.5k tons of the 46.5k tons of pork sold in the week
• South Korea led in beef purchases

 

DOE: US Ethanol Stocks Rise 1.9% to 23.074M Bbl

According to the US Department of Energy’s weekly petroleum report.

• Analysts were expecting 22.887 mln bbl
• Plant production at 1.107m b/d, compared to survey avg of 1.1m

 

Argentine Soy, Corn, Wheat Estimates Dec. 27: Exchange

The Buenos Aires Grain Exchange releases weekly report on its website.

• 2024-25 soybean area is trimmed by 1.1% to 18.4m hectares (45.5m acres) as tight profit margins drive a shift to other crops
• Soy planting reaches 85% completion
• 2024-25 corn area expands to 6.6m hectares

 

USDA attaché forecasts Brazil’s 2024/25 soy crop at 165 million T

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

“Post increased the 2024/25 forecast for soybean planted area expansion in Brazil to 47 million hectares (HA) and soybean production to 165 million metric tons (MMT). This season sowing began optimistically, with most soybeans planted on time compared to last year. Post revised up its soybean export estimate for 2024/25 to 105 MMT, a new record. Post maintains the 2022/23 harvested area estimate at 45.8 million HA and the production estimate at 152 MMT. Post revised up the 2024/25 crush forecast to 56 MMT based on available supplies and increased demand for soybean products.”

 

Egypt Almost Doubled Imports of Russian Wheat in 2H: Interfax

Egypt becomes a leader in imports of Russian wheat in July-December, Interfax says, citing Rusagrotrans research center.

• Egypt increased imports of wheat from Russia to 5.3m tons, up 1.8-fold y/y
• Second-largest importer is Bangladesh with 2.14m tons
  • Turkey has dropped to the third place, with imports down almost 33% to 2.08m tons
• Analysts forecast Russian wheat exports at 3.7m-3.8m tons in December, 29.4m tons in 1H of the 2024-2025 season

 

Russia Sets Quotas for Grain Exports From Occupied Ukraine Areas

Russian government set tariff quotas for duty-free exports of wheat, barley, corn and sunflower oil from four occupied and annexed regions of Ukraine.

Quota for exports of wheat, barley and corn from Donetsk Region will be 150,000 tons, Luhansk Region – 140,000 tons, Zaporizhzhia Region – 1m tons, Kherson Region – 700,000 tons, according to resolution signed Dec. 26

 

Russia Seeks to Nationalize Top Grain Trader, Interfax Says

Russian Prosecutor General’s Office filed a suit, seeking to nationalize Rodnie Polya LLC, a major grain trader formerly known as TD Rif, Interfax reports, citing the case materials.

• Prosecutors argue that Piotr Khodykin, a citizen of Saint-Kitts and Nevis and resident of UAE, violated Russian legislation by establishing control over a strategic entity
• Prosecutors argue that Rodnie Polya is a “strategic entity,” since its share of the grain transshipment market in the Azov seaport exceeds 20%

 

SOYBEAN/CEPEA: Supply decreases, but prices also move down

Brazilian sellers of soybeans are finishing this year with a smaller income. The planted area increased this year, but the productivity dropped in important areas, resulting in a decrease of the national production. Still, prices moved down, given that the global production increased more than the demand, boosting the stock/consumption relation. The situation was not worse because the demand for soybean oil increased.

Soybean prices dropped in January, February and August, but moved up in the other months. As a result, average quotations in December/24 were similar to those observed in December/23, in nominal terms, but values in 2024 were below those verified last year. The annual averages of the ESALQ/BM&FBovespa Index (Paranaguá) and CEPEA/ESALQ Index (Paraná) are the lowest since 2019, in real terms (deflated by IGP-DI, Nov/24), at BRL 139.00 per 60-kg bag and at BRL 134.30/bag, downing 12.7% and 11.3%, respectively, against the year before.

The global soy production hit the record of 394.87 million tons in the 2023/24 season, upping 4.42% in relation to the 2022/23 crop, according to the USDA. The output in Brazil dropped 5.6%, to 153 million tons.

SOYBEAN OIL – Prices rose during practically the entire year (except in December), influenced by export premiums and the firm domestic demand, especially from the biodiesel industry. It is worth noting that the mandatory blend of biodiesel into diesel changed from B12 (12%) to B14 (14%) in March 2024.

SOYBEAN MEAL – The market faced significant challenges in 2024. However, despite the production recovery in Argentina, Brazil shipped 21.16 million tons of soybean meal in 2024 (up to November), a record for the period – data from Secex.

Many consumers were unwilling to trade in 2024, in general, due to expectations of a surplus of soybean meal, since the firm demand for soy oil boosted the processing of soybeans.

 

CORN/CEPEA: Supply reduces in Brazil in 2024, but increases in global terms

Corn supply has decreased in Brazil in 2024. The production for both first and second crops reduced, increasing in the third season (North and Northeastern regions). The unfavorable weather affected the productivity, limiting the availability. On the other hand, the global supply in the 2023/24 crop increased, due to the higher volumes harvested in the United States, China, the European Union, Argentina and Ukraine.

In Brazil, corn prices moved down in the first semester, registering in July the lowest levels of this year. The pressure came from the summer crop harvesting, the good development of the second crop and by estimates of record global production.

The lower volume of rainfall, however, reduced the production, which, along with the higher exchange rate, boosted values in the second semester.

More rains from the second fortnight of October on favored sowing activities of the summer crop, reducing or even eliminating players’ concerns.

2024 was the third year of consecutive price drops, in nominal terms. With decrease in values and supply, 2024 was not positive to corn sellers in Brazil; this scenario may have favored consumers.

In total, the production of the 2023/24 crop was at 115.7 million tons in Brazil, 12.3% below than that in the 2022/23 season. The surplus totaled 40.42 million tons, 19% inferior than that in the previous crop and the lowest volume since 2021/22, according to Conab. With the lower surplus, Brazilian exports also decreased.

 

China Holds Meeting on Combating Grain Wastage

All regions in China should step up their efforts in avoiding grain wastage, the National Development and Reform Commission says, citing a recent work conference.

To enhance publicity work to achieve better results in avoiding food waste

 

The leafhopper is conspicuous by its absence in the main corn growing regions, but it has grown in several areas.

The pest that had the countryside in turmoil and generated great uncertainty at the time of deciding the planting of coarse crops, is giving truce. To end 2024 with good news, the tenth report of the National Monitoring Network of Dalbulus maidis , the corn leafhopper, the pest that transmits the stunting disease that devastated crops last season, indicated that the insect is absent in 97% of the North Central region and 99% of the South Central region of Argentina.

However, the network, which evaluated 425 localities of the country between December 7 and 21, 2024, found that in the NEA and Litoral, there was an increase of individuals in punctual endemic localitie sof Formosa, Chaco and Corrientes , anyway, they were at the lowest level, from 1 to 4 insects per trap. “The presence continued to be nil or very low in the areas where most of the crop is grown , such as eastern Santiago and Entre Ríos ,” the report said.

While in the NOA, which was severely affected the previous cycle, the pest did not grow or decreased.

With about a month to go before the end of the late corn planting window, this is undoubtedly very good news. In any case, technicians continue to recommend increased and constant monitoring, especially in fields where corn is already planted and is in the final stage of its susceptible period, paying special attention to areas where early and late corn will coexist. In the latter, they urge intensive monitoring of the headlands, since early detection will allow timely implementation of management measures. They also suggest integrated pest management.

 

Bunge restarts Illinois soy processing plant after fire

Bunge Global is restarting a soybean processing plant in Cairo, Illinois, after a fire in a conveyor belt temporarily shuttered it on Thursday, the grain company said.

The company, one of the world’s top agricultural merchants, said it was restarting the plant on Friday, spokesperson Deb Seidel said. No one was injured, she added.

 

 

 

 

 

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