Global Ag News for May 7.24

TOP HEADLINES

Philippines Says La Nina Threatens to Strain Food Supply

The Philippine government is taking steps to mitigate effects of extreme weather, as El Niño and global disruptions pressure food prices while La Niña threatens to compound the strain on the country’s food supply.

• “We are taking comprehensive measures to ensure food security amid geopolitical concerns and weather patterns worsened by climate change,” Economic Planning Secretary Arsenio Balisacan says in a statement
• “Our actions aim to boost local production and prepare for any challenges in food supply and price upticks,” he adds
• Rice remains the primary driver of inflation, accounting for 2.1 percentage points, agency says

FUTURES & WEATHER

Wheat prices overnight are down 5 in SRW, down 9 1/4 in HRW, down 6 in HRS; Corn is down 1 1/4; Soybeans down 7; Soymeal down $3.30; Soyoil up 0.13.

For the week so far wheat prices are up 21 1/4 in SRW, up 15 3/4 in HRW, up 5 in HRS; Corn is up 7 1/2; Soybeans up 26 3/4; Soymeal up $12.10; Soyoil up 0.89.

For the month to date wheat prices are up 40 1/2 in SRW, up 30 3/4 in HRW, up 15 1/4 in HRS; Corn is up 21; Soybeans up 78 3/4; Soymeal up $32.40; Soyoil up 0.96.

Year-To-Date nearby futures are up 1.1% in SRW, up 5.5% in HRW, down 2.1% in HRS; Corn is down 2.5%; Soybeans down 4.5%; Soymeal down 1.1%; Soyoil down 9.8%.

Chinese Ag futures (JUL 24) Soybeans up 9 yuan; Soymeal up 78; Soyoil up 96; Palm oil up 114; Corn up 27 — Malaysian Palm is up 65.  Malaysian palm oil prices overnight were up 65 ringgit (+1.68%) at 3927.

There were changes in registrations (41 SRW Wheat, 9 Oats, -22 Soybeans). Registration total: 1,479 SRW Wheat contracts; 9 Oats; 450 Corn; 469 Soybeans; 2,558 Soyoil; 226 Soymeal; 0 HRW Wheat.

Preliminary changes in futures Open Interest as of May 6 were: SRW Wheat up 3,187 contracts, HRW Wheat up 383, Corn up 5,194, Soybeans down 4,759, Soymeal up 7,395, Soyoil down 2,170.

Northern Plains: Isolated to scattered showers through Thursday. Mostly dry Friday. Temperatures near to below normal Tuesday-Friday. Outlook: Mostly dry Saturday-Monday. Isolated showers Tuesday-Wednesday. Temperatures near to above normal Saturday-Wednesday.

Midwest: West: Isolated to scattered showers through Wednesday. Mostly dry Thursday. Isolated showers Friday. Temperatures above normal through Wednesday, near to below normal Thursday-Friday. East: Isolated to scattered showers through Thursday. Mostly dry Friday. Temperatures above normal through Wednesday, near to above normal Thursday, near to below normal Friday. Outlook: Isolated to scattered showers Saturday-Wednesday. Temperatures near to below normal Saturday-Sunday, near normal Monday-Wednesday.

Delta: Isolated to scattered showers through Thursday. Mostly dry Friday. Temperatures above normal through Thursday, near to below normal Friday. Outlook: Mostly dry Saturday. Isolated to scattered showers Sunday-Wednesday. Temperatures near to below normal Saturday-Wednesday.

Brazil: Rio Grande do Sul and Parana:  Mostly dry Tuesday. Scattered showers Wednesday-Friday. Temperatures above to well above normal through Wednesday, below normal south and above normal north Thursday-Friday. Mato Grosso, MGDS and southern Goias:  Mostly dry through Friday. Temperatures above normal through Friday.

Argentina: Cordoba, Santa Fe, Northern Buenos Aires:  Isolated showers through Wednesday. Mostly dry Thursday-Friday. Temperatures near to above normal Tuesday, below normal Wednesday-Friday. La Pampa, Southern Buenos Aires:  Isolated showers Tuesday-Wednesday. Mostly dry Thursday-Friday. Temperatures near to above normal Tuesday, below normal Wednesday-Friday.

The player sheet for 5/6 had funds: net buyers of 11,500 contracts of SRW wheat, buyers of 7,000 corn, buyers of 14,000 soybeans, buyers of 6,500 soymeal, and buyers of 2,500 soyoil.

TENDERS

• CORN PURCHASE: Algerian state agency ONAB is believed to have bought an unknown volume of animal feed corn in a tender for up to 160,000 metric tons which closed last week but no purchase was reported of 70,000 tons of soymeal also sought.
• CORN TENDER: Taiwan’s MFIG purchasing group issued an international tender to buy up to 65,000 metric tons of animal feed corn which can be sourced from the United States, Brazil, Argentina or South Africa.
• CORN TENDER: An animal feed producer in South Korea has issued an international tender to purchase up to 70,000 metric tons of animal feed corn to be sourced from South America.
• WHEAT TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) sought to buy a total of 114,077 metric tons of food-quality wheat from the United States, Canada and Australia in a regular tender that will close late on Thursday.

 

 

TODAY

US Inspected 1.286m Tons of Corn for Export, 349k of Soybeans

In week ending May 2, according to the USDA’s weekly inspections report.

• Soybeans: 349k tons vs 276k the previous wk, 398k a yr ago
• Wheat: 321k tons vs 503k the previous wk, 216k a yr ago
• Corn: 1,286k tons vs 1,298k the previous wk, 974k a yr ago

US Corn, Soybean, Wheat Inspections by Country: May 2

Following is a summary of USDA inspections for week ending May 2 of corn, soybeans and wheat for export, from the Grain Inspection, Packers and Stockyards Administration, known as GIPSA.

• Soybeans for Egypt-bound shipments made up 85k tons of the 349k total inspected
• Mexico was the top destination for corn inspections, Philippines led in wheat

RAINS IN THE SOUTH CONCERN PLAYERS; DEMAND FOR SOYBEAN MEAL INCREASES

The excess of rainfall in Rio Grande do Sul (second biggest soybean producer in Brazil) has been concerning agents. In Argentina (major global exporter of soybean meal), rumors of a possible strike in the country concern purchasers of the byproduct in the world. In this scenario, the demand (both domestic and international) for the Brazilian soy meal has increased, boosting liquidity and prices.

Therefore, export premiums have increased and continue positive. It is worth noting that, in this period of the year, it is common for premiums to operate at negative levels, due to the season period in South America.

On the average of the regions surveyed by Cepea in Brazil, soymeal prices rose 0.3% comparing averages in March and in April. As for the soy oil (in São Paulo city with 12% ICMS), values upped 1.1% from March to April, influenced by the increase of export premiums in Brazil.

SOYBEANS – Prices moved up in Brazil in late April, boosted by increases of soybean meal quotations. Moreover, the significant volume of rains in Rio Grande do Sul has been affecting crop activities, bringing concerns about the quality.

The ESALQ/BM&FBovespa Index (Paranaguá) upped 4.04% from March 28 to April 30, closing at BRL 129.05 per 60-kg bag on April 30. The CEPEA/ESALQ Index (Paraná) increased 4.1%, to close at BRL 124.51 per 60-kg bag. In April, the Indexes averaged BRL 129.79/bag (Pranaguá) and BRL 122.66/bag (Paraná), moving up 4% and 4.6% against March, respectively. The averages in April are the highest of this year, in real terms (IGP-DI March/24).

CROPS – Data from Conab indicate that 90.5% of the 2023/24 area had been harvested. The delay is more significant in the South.

Brazil’s Rio Grande do Sul declares state of emergency amid severe flooding

Since April 29, Brazil’s southern Rio Grande do Sul state has been grappling with severe flooding following heavy rainfall, prompting the government to declare a state of emergency.

Central areas of Rio Grande do Sul have borne the brunt of the deluge, with cities receiving staggering rainfall ranging from 150 to 500 millimetres (6 to 20 inches), according to data from the regional rural agency Emater-RS.

In Restinga Seca city, located in the state’s centre, a monitoring station recorded an unprecedented 540mm of rainfall.

Overall, Rio Grande do Sul witnessed rainfall exceeding 135mm across most of the state, as reported by the US National Oceanic and Atmospheric Administration (NOAA). Meanwhile, dry weather prevailed in other regions of Brazil.

Although NOAA anticipates a decrease in rainfall in the coming weeks, adverse weather conditions are expected to persist. As of today, the state’s emergency service reported that 154 sections of 68 highways were either partially or completely blocked. Furthermore, excessive rainfall poses a threat to the 2023-2024 soybean crop in Rio Grande do Sul, which is currently being harvested.

Despite progress in field activities, including planting, excessive moisture levels have led to premature germination and plant decay in some areas. While current yield estimates remain high, forecasts may be revised downwards in the coming weeks as the full extent of the damage becomes clearer.

Russian Grain Union Says 6 Companies Rejected Export Quotas

Six companies, including RIF, LDC Vostok and Cofco, rejected grain export quotas, Russian Grain Union says in Telegram post, citing Agriculture Ministry’s documents.

• Total volume of refusals covers 1.37m tons and it has already been redistributed among other grain exporters

Argentina Scraps Tariffs on Fertilizer Imports: Economy Ministry

Argentina is eliminating import duties on fertilizers, the Economy Ministry said on X.

• The measure was published in Monday’s federal register
• Argentina has been charging a levy of up to 6% on urea and ammonium nitrate-based fertilizers from abroad
• NOTE: Argentine farmers used 4.6m metric tons of fertilizers in 2023, 2.6m of which were imported, according to industry group Ciafa
• Levies on herbicide imports, currently 24%-35%, will be reduced
• “The reduction of tariffs will spur the use of fertilizers and herbicides among farmers and improve crop yields,” according to the statement

Sime Darby Plantation to Operate Solar Farms in Perak Green Hub

Malaysia’s Sime Darby Plantation Bhd., the world’s biggest palm-oil planter by acreage, plans to co-develop an industrial park and invest in large-scale solar farms as part of its expansion into renewable energy.

• Sime will own and operate 660 acres of solar farms in the planned Kerian Integrated Green Industrial Park in the northern state of Perak, according to a Tuesday statement
  • The 1,000-acre park aims to attract E&E and semiconductors investment into the country
• Renewable energy is expected to “contribute significantly” to Sime in the next five years
• Co. will identify less productive agricultural lands to convert them into solar farms; it’s now in “active discussions” with several state agencies to develop some of its land into industrial parks
  • Sime is also exploring opportunities to develop data centers
• “By collaborating in such projects, instead of just signing off our land, we aim to secure more sustainable revenue streams,” Group MD Mohamad Helmy Othman Basha said in the statement

 

 

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