Global Ag News Headlines
TODAY—EXPORT INSPECTIONS—CROP PROGRESS
Overnight trade has SRW down roughly 2 cents, HRW down 2; HRS Wheat down 1, Corn is up 1 cent; Soybeans down 2, Soymeal down $0.50, and Soyoil down 15 points.
For the week, SRW Wheat prices were down roughly 35 cents; HRW down 26; HRS down 17; Corn was down 7 cents; Soybeans down 25; Soymeal down $11.00, and; Soyoil unchanged. Crushing margins were up 2 at 101.00 cents; Oil share unchanged at 34%.
Chinese Ag futures (January) settled up 25 yuan in soybeans, down 11 in Corn, down 16 in Soymeal, down 114 in Soyoil, and down 106 in Palm Oil.
Malaysian palm oil prices were down 28 ringgit at 2,730 (basis October) at midsession tracking cheaper rival oils.
U.S. Weather Forecast:
The 6-10 day forecast for the Midwest has light rainfall for most of Minnesota and far northern Iowa, along with southern sections of the Midwest; temps are seen running average to below for most of the week then warming to average to above by the weekend and early next week.
The 11 to 16 day forecast for the Midwest has average to a bit below average rainfall with temps to run average early and a bit below late.
The Southern Plains 6 to 10 day forecast is light rains for most of the region; temps running above average in western sections of the region.
The 6 to 10 day forecast for the Delta is mixed with the models; the European showing light rains mostly north, the GFS has light to moderate rains in most areas.
The player sheet had funds net sellers of 5,000 contracts of SRW Wheat; net sold 15,000 Corn; sold 9,000 Soybeans; net sold 1,000 lots of Soymeal, and; sold 4,000 Soyoil.
We estimate Managed Money net short 9,000 contracts of SRW Wheat; short 180,000 Corn; net long 31,000 Soybeans; net short 25,000 lots of Soymeal, and; long 46,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures up roughly 4,600 contracts; HRW Wheat down 875; Corn down 15,100; Soybeans up 8,800 contracts; Soymeal up 3,600 lots, and; Soyoil down 145.
Deliveries were 286 Soymeal; ZERO Soyoil, and ZERO Soybeans
There were changes in registrations (Soyoil down 48)—Registrations total 95 contracts for SRW Wheat; ZERO Oats; Corn ZERO; Soybeans ZERO; Soyoil 2,608 lots; Soymeal 511; Rice 11; HRW Wheat 47, and; HRS 1,387.
Tender Activity—Pakistan seeks 1.5 mt optional-origin wheat—Egypt seeks 64,500t optional-origin soyoil—
Speculators are approaching the one-year mark of the last time they were bullish toward Chicago-traded corn, and that trend is unlikely to end anytime soon as favorable U.S. growing conditions keep stockpiles generous; the expanding supply outlooks for corn and soybeans have offset incredibly strong export demand for the upcoming marketing year; combined U.S. corn and bean export sales for the new year are record-large, and just over half the total is destined for China.
Twenty-eight farm groups asked the U.S. Department of Agriculture on Friday to extend the deadline for farmers to apply for coronavirus assistance payments and try harder to reach more growers hurt by the pandemic; the American Farm Bureau Federation, with organizations representing producers of goods ranging from apples to cotton and cattle, said in a letter that USDA’s Aug. 28 deadline may prevent farmers from participating in the $16 billion aid program.
Canadian canola prices have soared to the highest in nearly two years, despite a diplomatic dispute between Ottawa and Beijing, as exporters find roundabout ways to reach top oilseed buyer China; Chinese authorities have since March 2019 blocked canola shipments by two Canadian exporters, an action they took after Canadian police detained a Huawei Technologies executive in late 2018 on a United States warrant; the dispute however, has not spoiled China’s appetite for canola, which is mainly processed into vegetable oil; while China is buying less from Canada directly, it has bought canola oil instead from Europe and the United Arab Emirates, with some of that oil made from Canadian canola.
Wire story reports Chinese importers will crank up their purchases of soybeans from the United States in the fourth quarter to meet healthy livestock demand, making the most of the start of the U.S. harvest season after existing Brazilian supply mostly dried up.
Russia’s July exports of wheat, barley and maize (corn) are estimated at 3.8 million tons, up from 550,000 tons estimated in June, the SovEcon agriculture consultancy said.
Ukraine has this year harvested 33 million tons of grain from 8.5 million hectares or 56% of the sown area as of Aug. 6, the economy ministry said; the volume included 23.1 million tons of wheat harvested from 87% of the sown area and 7.9 million tons of barley from 90% of the area.
The end of the soft wheat harvest in France has confirmed disappointing production in the European Union’s biggest grower, with attention turning to Germany where improved conditions could limit an expected decline in EU output; the poor French harvest is now expected to drop by around a quarter from last year to 29-30 million tons after torrential autumn rain cut sowings and spring drought hurt yields; coupled with weather-hit crops in major producers Romania and Britain, this French setback could push soft wheat production in the EU-27 plus Britain close to a drought-hit volume of 128 million seen two years ago.
Euronext wheat fell on Friday to a fresh one-month low in step with U.S. futures as improved harvest prospects in several exporting countries underscored ample global supply and eclipsed a smaller expected European Union crop; front-month September milling wheat was down 1.00 euro, or 0.6%, at 178.25 euros ($209.87) a ton after earlier touching its lowest since end-June at 178.00 euros.
Bulgaria has harvested 4.53 million tons of wheat from 97.6% of the sown area, 20% less than in the same period a year ago due to extensive drought, data from the agriculture ministry showed on Friday.
Lebanon navigates food challenge with no grain silo and few stocks
- Lebanon did not hold government strategic stockpile
- Tripoli port silo plans were shelved due to funding issues
- Economy minister says had plans for 40,000 tons of stockpile
Malaysia July palm oil stocks fall to 3-year lows on lower output
- July stocks down 10.55% on-month to 1.7 mln tons
- Production drops 4.14% to 1.81 mln tons
- Exports rise 4.19% to 1.78 mln tons
Exports of Malaysian palm oil products for August 1 – 10 fell 6.2 percent to 429,937 tons from 458,173 tons shipped during July 1 – 10, according to independent inspection company AmSpec Agri Malaysia said.
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