Global Ag News for May 21

TODAY—-  CATTLE ON FEED, COMMITMENTS OF TRADERS

Wheat prices overnight are down 5 3/4 in SRW, down 5 1/2 in HRW, down 1 1/4 in HRS; Corn is down 9 1/2; Soybeans down 17 1/2; Soymeal down $0.22; Soyoil down 0.78.

For the week so far wheat prices are down 37 3/4 in SRW, down 38 1/4 in HRW, down 46 1/2 in HRS; Corn is up 11; Soybeans down 70 1/2; Soymeal down $1.96; Soyoil down 2.61.

For the month to date wheat prices are down 65 1/4 in SRW, down 84 in HRW, down 69 1/2 in HRS; Corn is down 18 1/4; Soybeans down 18 1/2; Soymeal down $27.20; Soyoil up 2.59.

Chinese Ag futures (SEP 21) Soybeans down 52 yuan ; Soymeal down 8; Soyoil down 126; Palm oil down 146; Corn up 17 — Malasyian Palm is down 104.

Malaysian palm oil prices overnight were down 108 ringgit (-2.63%) at 4004 heading for its biggest weekly drop in two months as soy markets continued to slump and investors fretted that a resurgence in coronavirus infections in several countries will dampen demand.

Midwest corn, soybean and winter wheat forecasts: West: Scattered showers through Monday. Temperatures above to well above normal through Monday. East: Scattered showers northwest through Friday, north Saturday-Sunday. Scattered showers Monday. Temperatures above to well above normal through Monday. 6 to 10 day outlook: Scattered showers Tuesday-Saturday. Temperatures above normal Tuesday-Saturday.

The player sheet had funds net sellers of 2,500 contracts of SRW Wheat; buyers of 12,5XX corn, sellers of 10,000 soybeans, sellers of 2,000 Soymeal, and; net sellers of 3,000lots of Soyoil.

Preliminary changes in futures Open Interest as of May 20 were: SRW Wheat up 2,437 contracts, HRW Wheat up 2,823, Corn up 7,228, Soybeans up 3,414, Soymeal down 4,766, Soyoil down 47.

There were no changes in registrations. Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 165 Soybeans; 1,003 Soyoil; 442 Soymeal; 1,249 HRW Wheat.

TENDERS

• CORN SALE: USDA confirmed private sales of 1.224 million tonnes of U.S. corn to China for shipment in the 2021/22 marketing year.
• WHEAT SALE: Algeria’s state grains agency OAIC purchased about 400,000 tonnes of optional-origin milling wheat in an international tender that closed on Wednesday.
• SOYMEAL SALE: South Korea’s Feed Buying Group (FBG) on Thursday purchased about 60,000 tonnes of soymeal to be sourced optionally from the United States, South America or China.

PENDING TENDERS

• WHEAT TENDER: Japan’s Ministry of Agriculture sought 121,501 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.
• FEED WHEAT TENDER: Indonesia’s state procurement agency Bulog issued an international tender to buy and import about 180,000 tonnes of animal feed wheat.
• WHEAT TENDER: Bangladesh’s state grains buyer has issued another international tender to purchase 50,000 tonnes of milling wheat.

 Planalytics Raises U.S. Winter Wheat Forecast to 51.90 Bu/Acre

Outlook for this year’s crop yield is up from previous forecast of 50.70 bu/acre, according to data issued by Planalytics on Thursday.

 France’s Rouen Grain Exports Fell 52% in Week to May 19: Port

Grain shipments from France’s Rouen port totaled 39,825 tons, compared with 83,170 tons a week earlier, according to an emailed report.

 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 May 15 from the previous week, according to the USDA’s weekly grain transportation report.

• Barge shipments of corn fell 17% from the previous week
• Soybean shipments down 10% w/w

 U.S. Grain Movement by Rail Fell 12.5% Week Ended May 12: USDA

The following table summarizes the number of railcars hauling U.S. grain to Pacific Northwest, Texas Gulf, Mississippi River ports and to Mexico, according to data in the USDA’s weekly transportation report.

Indian Govt to distribute 8 lakh soybean mini-kits & 74K groundnut kits

The government will distribute more than 8 lakh (800,000) soybean mini-kits and 74,000 groundnut mini-kits to achieve self-sufficiency in the production of oilseeds with the Ministry of Agriculture and Farmers Welfare adopting a multi-pronged strategy.

Under the strategy, the government has approved an ambitious plan for the free distribution of high yielding varieties of seeds to the farmers for the Kharif season 2021 in the form of mini-kits. The special Kharif programme will bring an additional 6.37 lakh hectare area under oilseeds and is likely to produce 120.26 lakh quintals of oilseeds and edible oil amounting to 24.36 lakh tonnes.

Soy Buyers ‘Left With Virtually Nothing’ in U.S. Turn to Brazil

• U.S. stockpiles are seen near the lowest level in seven years
• Brazil sold most soy to U.S. since 2014; Mexico also bought

Users including chicken giant Perdue Farms Inc. have already purchased the most Brazilian soybeans since 2014, when huge sales to China forced the U.S. to boost imports. Brazil has also sold a large amount of the oilseed to Mexico, which usually secures supply from its North American neighbor.

Supplies in Brazil, which wrapped up its harvest last month, are relatively plentiful. The country is yet to reopen from the pandemic, and Chinese buyers were forced to turn to the U.S. earlier in the year to bridge the gap when their shipments from Brazil were delayed.

Brazil is scheduled to ship 150,000 to 180,000 metric tons of soybeans to the U.S. this year, with poultry and livestock producers in the southeastern U.S. taking advantage of the lower prices in the world’s top exporter, according to data compiled by Bloomberg. Mexico has also bought more than 700,000 tons and is close to surpassing last year’s record, the data showed.

Edible oil prices in India expected to fall

 Edible oil prices in India are expected to fall if China reduces imports of palm oil, as it has indicated. Prices of edible oils have gone up 40-50% in the past eight months, pinching the pockets of consumers amid the Covid-19-induced economic slowdown.

China is expected to lower its palm oil purchases in the 2021-22 marketing year, spanning October 2021-September 2022, as it looks to ramp up domestic edible oil production. Besides, the industry wants the government to reduce import duty on edible oils so that consumers can get some relief.

The basic import duty on crude palm oil (CPO), sunflower and soybean oils is 15%. There is a 17.5% cess on CPO and 20% cess on crude soybean and sunflower oil.

U.S. Corn Acres Could Rise ‘Few Hundred Thousand’: Corteva CEO

(Bloomberg) — U.S. seed sales of Pioneer brand were “consistent” this season but there may be some “additional opportunity in corn,” Corteva Inc. Chief Executive Officer Jim Collins says Thursday during the BMO Global Farm to Market Conference.

• U.S. corn acres could rise by “maybe a few hundred thousand acres”
• Expects U.S. farmers to have record income levels “for the right reasons” amid soaring crop prices this year and less government aid from last few years
• Says planted area a “positive unknown” for upcoming South American season, with farmers potentially boosting seed purchases

French Soft-Wheat Ratings Steady as Barley Declines: AgriMer

The amount of France’s soft-wheat crops rated in good or very good condition was unchanged in the week to May 17, while barley conditions worsened slightly, FranceAgriMer data showed on Friday.

Corn was 97% planted, that compares with 95% in the prior week and 93% last year

Russian Wheat Harvest Seen at 80.7m Tons This Year: IFX

Russia’s total grains harvest will be 127.4m tons this year, including 80.7m tons of wheat, Interfax reported, citing an Agriculture Ministry presentation. The total grains harvest was 133.5m tons in 2020, including 85.9m tons of wheat.

Possible Bumper Wheat Crop Raises Quality Concerns in Kansas

• Winter wheat yields could surpass all-time record in 2016
• But warm, wet conditions could breed leaf rust in coming weeks

Heavy rain has primed America’s bread basket for a record wheat yield, even as it raises concerns about crop quality.

That’s the big takeaway from traders and analysts trekking across Kansas this week for the Wheat Quality Council’s annual crop tour. In many fields, wheat that was severely drought-stressed not long ago now appears “lush and succulent,” according to council Executive Vice President Dave Green. “The wheat was so soft it actually squeaked as you were walking on it.”

Winter wheat is expected to yield 58.1 bushels per acre when it’s harvested next month. That would surpass a record 57 bushels per acre achieved five years ago and would far exceed the current U.S. Department of Agriculture estimate of 48 bushels per acre.

Downpours and temperatures in the 80s Fahrenheit (27 Celsius) create a “perfect environment” for a fungal disease known as leaf rust “Quality concerns start entering the mind if we are going to have this kind of weather pattern up until harvest,” he said.

In addition, “a high yield typically means it is a lower-protein crop” because the plant used up so much protein in the growing process.

Aussie state doubles grain treatment sites to combat mouse plague

The number of grain treatment sites in the Australian state of New South Wales (NSW) would be doubled in efforts to fight the mouse plague and protect farmers’ crops.

The NSW government said on Friday that 20 grain treatment sites would be rolled out across rural areas in the state most affected by the mice plague, once Australian Pesticides and Veterinary Medicines Authority (APVMA) approved it.

The state’s mouse plague has become more critical, and the government has been forced to double the initially suggested 8 to 10 sites in plan, and has already secured 5,000 locally-sourced liters of bromadiolone, a rodenticide meant to kill rats and mice, with an additional 5,000 liters arriving from overseas in the coming days.

Japan’s use of corn in animal feed drops in Mar

Japan’s usage of corn in animal feed fell to 48.1% in March, compared with 48.5% a year earlier, preliminary data from the Ministry of Agriculture, Forestry and Fisheries showed on Thursday.

U.S. generation of renewable fuel credits falls in April -EPA

The United States generated fewer renewable fuel blending credits in April than in March, the Environmental Protection Agency said on Thursday.

About 1.14 billion ethanol (D6) blending credits were generated in April, down from 1.19 billion in March. About 386 million biodiesel (D4) blending credits were generated last month, down from 407 million the month prior.