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Global Ag News for Jan 14 22

TODAY – COMMITMENTS OF TRADERS

Wheat prices overnight are down 7 in SRW, down 10 3/4 in HRW, down 13 3/4 in HRS; Corn is up 1 1/2; Soybeans down 6 3/4; Soymeal down $0.05; Soyoil down 0.40.

For the week so far wheat prices are down 18 3/4 in SRW, down 26 in HRW, down 41 1/2 in HRS; Corn is down 17 3/4; Soybeans down 39 3/4; Soymeal down $1.66; Soyoil down 0.73. For the month to date wheat prices are down 31 in SRW, down 52 1/2 in HRW, down 100 1/4 in HRS; Corn is down 4 1/4; Soybeans up 31 1/4; Soymeal up $9.30; Soyoil up 1.51.

Chinese Ag futures (MAY 22) Soybeans up 1 yuan ; Soymeal down 30; Soyoil down 44; Palm oil down 24; Corn up 8 — Malasyian Palm is down 38. Malaysian palm oil prices overnight were down 38 ringgit (-0.74%) at 5123.

There were no changes in registrations. Registration total: 1,900 SRW Wheat contracts; 25 Oats; 50 Corn; 371 Soybeans; 143 Soyoil; 0 Soymeal; 92 HRW Wheat.

Preliminary changes in futures Open Interest as of January 13 were: SRW Wheat up 6,316 contracts, HRW Wheat up 189, Corn down 9,696, Soybeans up 5,005, Soymeal up 1,046, Soyoil up 854.

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

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

The player sheet for Jan. 13 had funds: net sellers of 8,000 contracts of  SRW wheat, sellers of 16,000 corn, sellers of 14,000 soybeans, sellers of 4,500 soymeal, and  sellers of 3,500 soyoil.

TENDERS

  • WHEAT SALE: Iraq’s state grains buyer is believed to have purchased about 150,000 tonnes of Australian-origin milling wheat in a restricted purchase tender this week
  • WHEAT SALE: Iranian state agency the Government Trading Corporation (GTC) is believed to have purchased around 240,000 tonnes of milling wheat in a tender which closed on Wednesday
  • WHEAT SALE: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) bought a total of 107,555 tonnes of food-quality wheat from the United States and Canada in regular tenders that closed on Thursday.
  • CORN TENDER: South Korea’s Major Feedmill Group (MFG) has issued an international tender to purchase up to 140,000 tonnes of animal feed corn
  • WHEAT TENDER UPDATE: Algeria’s state grains agency OAIC is believed to have postponed its international tender to purchase milling wheat which closed on Thursday, with negotiations expected to continue on Friday

PENDING TENDERS

  • WHEAT TENDER: The Taiwan Flour Millers’ Association has issued an international tender to purchase 49,395 tonnes of grade 1 milling wheat to be sourced from the United States
  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice with import using land transport by railway
  • WHEAT TENDER: Algeria’s state grains agency OAIC has issued an international tender to buy milling wheat to be sourced from optional origins
  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice
  • WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy 120,000 tonnes of milling wheat, which can be sourced from optional origins, European traders said. The deadline for submission of price offers in the tender is Jan. 18. (Full Story)
  • WHEAT TENDER: Turkey’s state grain board TMO has issued an international tender to purchase about 335,000 tonnes of milling wheat
  • FEED WHEAT, BARLEY TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said on Wednesday that it will seek 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by Feb. 15 and arrive in Japan by March 17, via a simultaneous buy and sell (SBS) auction that will be held on Jan. 19.

China Dec. Soybean Imports 8.866m Tons: Customs

  • Soybean Imports 8.866m Tons
    • Soybean imports YTD fell 3.8% y/y to 96.518m tons
  • Edible vegetable oil imports in Dec. 819,000 tons
    • Edible vegetable oil imports YTD fell 3.7% y/y to 10.392m tons
  • Rubber imports in Dec. 634,000 tons
    • Rubber imports YTD fell 9.4% y/y to 6.769m tons
  • Meat (including offal) imports in Dec. 654,000 tons
    • Meat (including offal) imports YTD fell 5.4% y/y to 9.378m tons

U.S. Sold 919K Tons of Soybeans Last Week; 458K of Corn: USDA

USDA releases net export sales report on website for week ending Jan. 6.

  • Soybean sales rose to 919k tons vs 450k in previous week
  • Corn sales rose to 458k tons vs 256k in previous week
  • All wheat sales rose to 264k tons vs 51k in previous week

Ukraine Doesn’t Plan to Limit Wheat Exports, Ministry Says

Ukraine’s Agriculture Ministry reiterates it doesn’t plan any restrictions on exports of wheat, deputy minister Taras Vysotskyi said in a text message to Bloomberg News.

  • Ministry hasn’t expressed any concerns regarding pace of exports of milling wheat amid fears from bakers that growing shipments increase domestic cost of bread, fueling consumer inflation
  • NOTE: Last month Reuters reported Ukraine’s government would mull in mid-January the possible need to limit milling-wheat exports in 1H 2022

IGC Sees Record World 2022 Wheat Crop; Slashes 2021-22 Soy Est.

World wheat production in the 2022-23 season could rise for a fourth year to a fresh record, the London-based International Grains Council says in an emailed report.

  • Consumption will also climb, keeping stockpiles little changed y/y
    • Reserves across major exporters are likely to remain smaller than average
  • For the 2021-22 year, IGC raises estimate of global grain stockpiles to 601m tons, versus 600m tons seen in November
    • Wheat stockpiles raised by 2m tons and corn kept steady
  • World soybean crop estimate for 2021-22 falls to 368m tons, from 380m tons, due to heat and dryness shrinking South American prospects
    • Stockpile estimate cut to 52m tons, from 60m tons

Argentine Soy, Corn, Wheat Estimates Jan. 13: Exchange (Table)

The Buenos Aires Grain Exchange releases weekly report on website.

  • 2021-22 Soybean area cut to 16.4m ha vs 16.5m last week
    • Planting 92.5% complete
  • Wheat harvest complete, production maintained at 21.8m tons

NW China imports corn from Central Asia by freight train

A freight train loaded with 1,300 tonnes of corn from Kazakhstan arrived at Lanzhou, capital of northwest China’s Gansu Province, on Wednesday, marking a busy start of trade with Central Asia and beyond this year.

It took about a week for the train to travel from Kazakhstan and arrive at its destination, a logistics park in Lanzhou New Area, the city’s national-level development zone. The corn is the second batch of goods from Kazakhstan, as grain and oilseed crops from the Central Asian country were sent by train a few days ago.

Since the park received its first batch of goods on Jan. 3, 15 international freight trains have sent more than 22,400 tonnes of goods worth about 270 million yuan (about 42.5 million U.S. dollars) to and from the park in less than 10 days.

The logistics park has delivered 442 international freight trains linking China with about 40 countries since 2015. Lanzhou’s international freight train service is China’s first to see more inbound than outbound trains. The goods traded via the service cover corn, flaxseed, barley, sunflower seeds and wood.

Malaysia Keeps Crude Palm Oil Export Tax at 8% in February

Gazetted price for crude palm oil at 4,907.14 ringgit a ton, which incurs the maximum export tax of 8%, according to a statement from the customs department posted on the Malaysian Palm Oil Board’s website.

  • NOTE: Tax has been kept at 8% since Jan. 2021, following government exemption in July-December 2020
  • NOTE: Export duty structure starts at 3% when FOB prices for CPO are in the 2,250-2,400 ringgit per ton range
  • Maximum tax rate is 8% when prices are above 3,450 ringgit per ton

Russian Wheat-Export Tax to Fall to $97.50/Ton Next Week

Russia’s wheat export customs duty will fall to $97.50/ton next week, from $98.20, according to the Agriculture Ministry’s 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; $98.20 level was the highest yet

U.S. Barge Shipments of Grain Fell 13% Last Week: USDA

Shipments along the Mississippi, Illinois, Ohio and Arkansas rivers declined in the week ending Jan. 8 from the previous week, according to the USDA’s weekly grain transportation report.

  • Barge shipments of corn rose 15% from the previous week
  • Soybean shipments down 33% w/w

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