Global Ag News for Dec 3rd

Severe Flooding in Australia Set to Worsen, Submerging Crops

Wheat prices overnight are down 3 1/2 in SRW, down 6 3/4 in HRW, down 5 in HRS; Corn is up 1 1/4; Soybeans up 8 1/2; Soymeal up $0.22; Soyoil up 0.57.

For the week so far wheat prices are down 29 in SRW, down 33 3/4 in HRW, down 11 1/4 in HRS; Corn is down 13 3/4; Soybeans up 1/2; Soymeal up $0.25; Soyoil down 1.92. For the month to date wheat prices are up 24 1/4 in SRW, up 13 1/4 in HRW, up 27 1/4 in HRS; Corn is up 10 1/2; Soybeans up 35 1/2; Soymeal up $8.00; Soyoil up 1.70.

Chinese Ag futures (JAN 22) Soybeans up 3 yuan ; Soymeal up 46; Soyoil up 22; Palm oil up 132; Corn up 1 — Malasyian Palm is down 34. Malaysian palm oil prices overnight were down 34 ringgit (-0.73%) at 4650.

There were changes in registrations (-33 Oats). Registration total: 1,790 SRW Wheat contracts; 111 Oats; 2 Corn; 277 Soybeans; 233 Soyoil; 1 Soymeal; 108 HRW Wheat.

Preliminary changes in futures Open Interest as of December 2 were: SRW Wheat down 5,268 contracts, HRW Wheat down 1,312, Corn up 6,429, Soybeans down 1,380, Soymeal down 5,566, Soyoil down 5,615.

Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana Forecast: Mostly dry through Saturday. Isolated showers Sunday-Monday. Temperatures near normal through Friday, near to above normal Saturday-Monday. Mato Grosso, MGDS and southern Goias Forecast: Scattered showers through Monday. Temperatures near normal through Monday.

 Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires Forecast: Mostly dry Thursday. Scattered showers Friday-Saturday. Mostly dry Sunday-Monday. Temperatures near to below normal through Monday. La Pampa, Southern Buenos Aires Forecast: Scattered showers Thursday-Saturday. Mostly dry Sunday-Monday. Temperatures near to below normal through Monday.

The player sheet for Dec. 2 had funds: net buyers of 13,000 contracts of  SRW wheat, buyers of 7,500 corn, buyers of 8,500 soybeans, buyers of 5,500 soyoil, and unchanged in soymeal.

TENDERS

• WHEAT TENDER: Saudi Arabia’s state grains buyer, the Saudi Grains Organization (SAGO), said it was seeking 535,000 tonnes of wheat in a tender for arrival between May and July 2022. The wheat was sought in nine consignments, including two for the port of Jeddah, three each for Dammam and Yanbu, plus one for Jizan, SAGO said in a statement. Traders added that SAGO was seeking hard wheat of 12.5% protein content, with various origins possible. The deadline for offers is Dec. 3 and results are expected on Dec. 6, traders said.
• SOYBEAN SALES: The U.S. Department of Agriculture confirmed private sales of 130,000 tonnes of U.S. soybeans to China and another 164,100 tonnes to unknown destinations, all for delivery in the 2021/22 marketing year that began Sept.
• WHEAT AND BARLEY PURCHASE: Tunisia’s state grains agency is believed to have purchased about 100,000 tonnes of soft wheat, 92,000 tonnes of durum wheat and 100,000 tonnes of feed barley from optional origins in international tenders on Thursday
• WHEAT PURCHASE: Jordan’s state grain buyer is thought to have purchased about 60,000 tonnes of optional-origin wheat in an international tender which closed on Thursday
• WHEAT PURCHASE: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) bought 26,263 tonnes of food-quality wheat from Australia in a regular tender that closed on Thursday.

PENDING TENDERS

• WHEAT TENDER: An Ethiopian government agency issued an international tender to buy about 400,000 tonnes of milling wheat
• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat

U.S. Sold 1.02M Tons of Soybeans Last Week; 1.02M of Corn: USDA

USDA releases net export sales report on website for week ending Nov. 25.

• Corn sales fell to 1,021k tons vs 1,519k in previous week
• Soybean sales fell to 1,015k tons vs 1,571k in previous week
• All wheat sales fell to 106k tons vs 568k in previous week

 U.S. Export Sales of Soybeans, Corn and Wheat by Country

U.S. export sales of soybeans, corn and wheat by biggest net buyers for week ending Nov. 25, according to data on the USDA’s website.

• China bought 657k tons of the 1.02m tons of soybeans sold in the week
• Mexico was the top buyer of corn and Colombia led in wheat

U.S. Export Sales of Pork and Beef by Country

U.S. export sales of pork and beef product by biggest net buyers for week ending Nov. 25, according to data on the USDA’s website.

• Mexico and China combined for 32.3k tons of the 45.5k tons of pork sold in the week
• South Korea led in beef purchases

Argentine Soy, Corn, Wheat Estimates Dec. 2: Exchange

The Buenos Aires Grain Exchange releases weekly report on website.

• 2021-22 Corn area raised to 7.3m ha vs 7.1m last week
  • Planting 31.1% complete vs 30% a week ago
• Soybean planted area held at 16.5m ha

 French Durum Wheat Planting Still Lags Last Year’s Pace: Agrimer

Soft-wheat planting was 99% complete in France as of Nov. 29, FranceAgriMer data showed on Friday.

• Compares with 97% in the prior week and 99% last year
• 99% of soft-wheat is in good or very good condition
  • That’s the same as the prior week and compares with 96% last year
• Durum-wheat planting was 88% complete
  • Compares with 79% the prior week and 90% last year

BARLEY

• Winter-barley planting was 99% complete
  • Compares with 99% the prior week and 100% last year
• 98% of winter barley is in good or very condition
  • Compares with 99% the prior week and 94% last year

CORN

• French corn crop was 99% harvested
  • Compares with 97% the prior week and a completed harvest last year

Severe Flooding in Australia Set to Worsen, Submerging Crops

Severe flooding episodes across vast swathes of eastern Australia this week show no signs of relenting as costs to farmers continue to mount, with another bout of heavy rain on course to hit the already sodden growing regions over this weekend.

Grain farmers are bracing for a further deterioration in weather conditions after Australia experienced its wettest November on record in 122 years, resulting in reports of widespread quality downgrades for crops. The rains have also bogged down machinery just as growers head into what should be peak harvest season across many areas in Queensland and New South Wales.

While the full extent of the damage is still unknown as many growers are unable to access flooded paddocks to tally up the costs, the figure could top A$1 billion ($707 million), according to the NSW Department of Primary Industries. Much of that would be put down to lost crop potential, even though Australia is still on track to produce a record wheat harvest this season.

U.S. biofuel blending proposals to come in days, sources say

The U.S. administration plans to propose in days the amount of biofuels oil refiners must blend into their fuel mix this year and next year, as it reaches out to lawmakers to discuss the move, three sources familiar with the matter said.

President Joe Biden’s administration has delayed decisions on 2021 blending obligations by more than a year, and it missed a deadline to finalize 2022 obligations this week.

The delays came as the COVID-19 pandemic hammered fuel demand and Democratic lawmakers focused on other legislation.

The EPA has told at least two U.S. Democratic Senate offices to expect retroactively lower volumes for 2020 and 2021 and a restoration of volumes in 2022, according to one of the sources.

The oil and biofuel industries have called for the EPA to announce the proposals, saying delays have created uncertainty for the market.

After the news on Thursday, prices for renewable fuel (D6) credits RIN-D6-US, known as RINs, fell more than 7% to $1.00 each from $1.08 each, traders said.

Merchant oil refiners and the biofuel industry have battled over the requirements for years. Refiners say the mandates are too costly, while ethanol producers and corn farmers like the mandates as they have helped to create a multibillion-gallon market for their products.

The EPA would reduce blending mandates for 2020 and 2021 to about 17.1 billion gallons and 18.6 billion gallons, respectively, Reuters reported, compared to the 20.1 billion gallons finalized for 2020 before the pandemic.

The agency would also set the level for 2022 at about 20.8 billion gallons, Reuters reported. The EPA did not comment on those levels at the time of publication.

Argentina readies 2022/23 farm plan to ease tensions with producers

Argentina’s government is preparing a farm sector roadmap for the next two years which it will present to producers next week, officials said on Thursday, hoping to ease conflicts with the sector over caps on meat exports and grains.

The South American country, the top global exporter of processed soy, the second in corn and a top five beef producer, has suffered regular protests from the farm sector and workers in the past year, which have at times affected production and shipments.

A temporary cap imposed on corn exports early in the year, threats to raise taxes on wheat shipments and a strict limit on beef exports to rein in inflation fanned tensions in the sector, the main export driver and source of much-needed foreign currency in the South American nation.

Argentina’s Peronist government faces a tough balancing act trying to keep farmers from revolting while meeting consumers’ demands for affordable food amid inflation running at an annual rate of more than 50%.

The center-left administration of President Alberto Fernandez also sorely needs farm export dollars to replenish depleted currency reserves and to pay off debt amid talks to delay $45 billion it owes the International Monetary Fund.

Brazil Agriculture GDP Heads to a Loss in 2021 on Dryness: Cepea

Gross domestic product in the agriculture sector is expected to fall this year after adverse weather curbed corn, coffee and sugar-cane production, Nicole Renno, a macroeconomic researcher at Cepea, says by phone.

• Agriculture GDP tumbled in the third quarter due to a drought that reduced the second corn crop, sugar-cane and coffee production, she said
• Weather issues intensified the decline on coffee output in the lower half of a biennial cycle
• “The tumble in the third quarter wasn’t bigger due to a record soybean crop”

Russian Wheat-Export Tax to Rise to $84.90/Ton Next Week

Russia’s wheat export customs duty will increase to $84.90/ton next week from $80.80, the Agriculture Ministry said Friday on its website.

• NOTE: The rates are set weekly and take effect three working days after publication
• NOTE: Russia started the floating tax from June 2, with a $28.10/ton levy; next week’s level will be a record

U.S. Barge Shipments of Grain Fell 16% Last Week: USDA

Shipments along the Mississippi, Illinois, Ohio and Arkansas rivers declined in the week ending Nov. 27 from the previous week, according to the USDA’s weekly grain transportation report.

• Barge shipments of corn fell 16% from the previous week
• Soybean shipments down 19% w/w

Farm Animals Died by the Hundreds of Thousands in Canada Floods

• Deluges in British Columbia wipe out more than 600,000 poultry
• Farmers now facing grim task of hauling carcasses from barns

Hundreds of thousands of livestock have perished in floodwaters in Canada’s westernmost province, the British Columbia government said Thursday.

Back-to-back deluges from atmospheric rivers have damaged major transport routes, forced evacuations and briefly isolated Canada’s biggest port. The agricultural region of Sumas Prairie, near the nation’s third-largest city, Vancouver, is one of the hardest hit flood zones.

So far, 628,000 poultry have been reported dead, as well as 420 dairy cattle and roughly 12,000 hogs. Additionally, 110 bee hives were submerged. More than 800 farms remain under evacuation orders, Lana Popham, the province’s minister of agriculture, food and fisheries, told reporters on Thursday.

Germany reports another African swine fever case in wild animal

A case of African swine fever (ASF) has been found in a wild boar in the eastern German state of Mecklenburg-Vorpommern, the agriculture ministry for the neighbouring state of Brandenburg said on Thursday.