Written Commentary
TODAY – EIA WEEKLY PETROLEUM STATUS REPORT
Wheat prices overnight are down 3 3/4 in SRW, down 3 1/2 in HRW, down 4 1/2 in HRS; Corn is down 2 3/4; Soybeans down 8 1/4; Soymeal down $0.12; Soyoil down 0.42.
For the week so far wheat prices are down 7 1/2 in SRW, down 1/4 in HRW, up 4 in HRS; Corn is up 2 3/4; Soybeans up 8 1/2; Soymeal down $0.17; Soyoil down 0.20.For the month to date wheat prices are up 23 in SRW, up 42 in HRW, up 104 1/2 in HRS; Corn is up 4; Soybeans down 26 1/4; Soymeal down $3.00; Soyoil up 3.20.
Chinese Ag futures (JAN 22) Soybeans down 44 yuan ; Soymeal down 17; Soyoil down 50; Palm oil down 52; Corn down 11 — Malasyian Palm is down 42. Malaysian palm oil prices overnight were down 42 ringgit (-0.84%) at 4970 tracking losses in global edible oils, with prices further dragged by concerns that robust Indian demand will fizzle out.
There were no changes in registrations. Registration total: 1,180 SRW Wheat contracts; 2 Oats; 17 Corn; 1 Soybeans; 233 Soyoil; 1 Soymeal; 108 HRW Wheat.
Preliminary changes in futures Open Interest as of October 26 were: SRW Wheat up 4,095 contracts, HRW Wheat up 2,079, Corn up 6,129, Soybeans down 10,288, Soymeal down 765, Soyoil down 626.
Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana… Summary Forecast: Mostly dry through Wednesday. Isolated showers north Thursday-Friday. Isolated showers Saturday. Temperatures near to above normal through Saturday. Mato Grosso, MGDS and southern Goias Forecast: Scattered showers through Saturday. Temperatures near to below normal through Saturday.
Midwest corn, soybean and winter wheat forecasts: West: Mostly dry Tuesday. Scattered showers Wednesday-Friday. Mostly dry Saturday. Temperatures near to above normal through Saturday. East: Mostly dry Tuesday-Wednesday. Scattered showers Thursday-Saturday. Temperatures near to below normal Tuesday, near to above normal Wednesday-Saturday. 6 to 10 day outlook: Mostly dry Sunday. Scattered showers Monday-Tuesday. Mostly dry Wednesday-Thursday. Temperatures near to above normal Sunday, below normal Monday-Thursday.
The player sheet for Oct. 26 had funds: net sellers of 4,000 contracts of SRW wheat, buyers of 5,500 corn, sellers of 1,000 soybeans, sellers of 1,000 soymeal, and sellers of 3,000 soyoil.
TENDERS
- SOYBEAN SALES: The U.S. Department of Agriculture confirmed private sales of 199,000 tonnes of U.S. soybeans to China and another 125,730 tonnes to Mexico, all for delivery in the 2021/22 marketing year that began Sept. 1.
- WHEAT TENDER: Egypt’s General Authority for Supply Commodities (GASC) set a tender to buy an unspecified amount of wheat from global suppliers for shipment from Dec. 1-10, for payment at sight.
PENDING TENDERS
- 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
- WHEAT TENDER: The Ethiopian government issued an international tender to buy about 300,000 tonnes of milling wheat
- WHEAT TENDER: An Ethiopian government agency issued a new international tender to buy about 400,000 tonnes of milling wheat
Republican Senators Seek Meeting With Biden on Biofuels
A group of Republican Senators seek a meeting with President Joe Biden and members of the cabinet to discuss biofuels such as ethanol and biodiesel, Senator Joni Ernst says in a tweet.
- Biofuels “hold the proven ability to provide consumers broad choices for cleaner and more affordable energy,” lawmakers tell Biden
- The Biden Administration should re-establish the year-round sale of E15, a mix of 15% ethanol and 85% gasoline, and feature biofuels as part of international outreach during the COP26 climate summit in Glasgow, senators say
ETHANOL: U.S. Weekly Production Survey Before EIA Report
Output and stockpile projections for the week ending Oct. 22 are based on eight analyst estimates compiled by Bloomberg.
- Production seen slightly higher than last week at 1.097m b/d
- Stockpile avg est. 20.341m bbl vs 20.08m a week ago
- Would be the second straight weekly increase in stocks after falling to a four-month low on Oct. 8
EU Soft-Wheat Exports Up 24% Y/y, But French Data Is Incomplete
Soft-wheat shipments during the season that began July 1 reached 8.99m tons as of Oct. 24, vs 7.23m tons in a similar period a year earlier, the European Commission said Tuesday on its website.
- NOTE: Figures for France, one of the EU’s top grain exporters, are complete only until July
- NOTE: Data for the prior season include trade for the U.K. until Dec. 31, 2020, when the country departed the EU customs union
- Top soft-wheat destinations were Algeria (1.29m tons), Egypt (1.01m tons) and South Korea (823k tons)
- EU barley exports totaled 2.86m tons, compared with 2.74m tons a year earlier
- China is the top market at 660k tons
- EU corn imports reached 4.1m tons, against 5.4m tons a year earlier
- NOTE: Click here for data on oilseed trade, which also lacks full figures for France
Brazil Soy Exports Seen Reaching 3.432 Million Tns In October – Anec
BRAZIL SOY EXPORTS SEEN REACHING 3.432 MILLION TNS IN OCTOBER VERSUS 3.397 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
BRAZIL CORN EXPORTS SEEN REACHING 2.143 MILLION TNS IN OCTOBER VERSUS 2.314 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
Argentine farmers have sold 32.7 mln tonnes of 2020/21 soy so far -ministry
Argentine farmers have so far sold 32.7 million tonnes of 2020/21 soy, the Agriculture Ministry said on Tuesday in a report including data through October 20.
The rhythm of sales was behind that of the previous season, when as of the same date last year sales of 33.9 million tonnes of the oilseed had been registered, according to official data.
The 2020/21 soybean harvest concluded in June at 43.1 million tonnes, according to the Buenos Aires Grains Exchange, which estimated the 2019/20 harvest at 49 million tonnes.
Foreign exchange from agricultural exports is essential for Argentina’s economy, which has been hit by inflation running at more than 52% per year and a deep 2020 recession.
Regarding 2021/22 soybeans, planting of which starts this month, sales of 2.4 million tonnes have been registered in the forward market so far, the ministry said in the report. The exchange expects a 2021/22 harvest of 44 million tonnes.
Bartlett Building $325M Soybean Crushing Plant in Southeast Kansas
Bartlett, a company of the Savage Group, has gained approval from the Board of County Commissioners of Montgomery County, Kansas, in support of the company’s plan to invest $325 million to develop a soybean crushing facility in the county.
Once completed, the facility will have the capacity to handle approximately 38.5 million bushels of soybeans per year, which will be crushed into soybean meal, refined soybean oil, and feedstocks for the production of renewable fuels, food products, and animal feed.
Morocco to Suspend Wheat Import Tax Starting Nov. 1: Hespress
The suspension of import duties for wheat aims to stabilize domestic prices, Rabat-based Hespress online newspaper reports, citing Agriculture and Fisheries Minister Mohamed Sadiki.
- Sadiki spoke during questions and answer session in parliament on Tuesday: Hespress
- Government is expected to formally announce the suspension Oct. 28
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