Global Ag News Headlines for June 9

Overnight trade has SRW down roughly 4 cents, HRW down 1; HRS Wheat down 2, Corn is down 2 cents; Soybeans down 2, Soymeal down $0.50, and Soyoil down 5 points.

Chinese Ag futures (Sep) settled up 105 yuan, up 8 yuan in Corn, down 14 in Soymeal, up 44 in Soyoil, and up 74 in Palm Oil.

Malaysian palm oil prices were up 43 ringgit at 2,391 (basis August) at midsession as export duty exemption leads to demand hopes.

U.S. Weather Forecast

Tropical Depression Cristobal will move from south to north across the western half of the Corn Belt into Tuesday promoting a band of significant rain and localized flooding; rain will be most significant from Arkansas through eastern Minnesota and northwestern Wisconsin

A period of mostly dry-biased conditions in the Corn Belt, Hard Red Winter Wheat Region, and Delta Thursday through next Monday; the dry-bias will then likely continue past next Monday in the Delta and a majority of the Hard Red Winter Wheat Region.

The player sheet had funds net sellers of 4,000 contracts of SRW Wheat; net bought 8,000 Corn; net sold 4,000 Soybeans; net sold 1,000 Soymeal, and; net even in Soyoil.

We estimate Managed Money net short 10,000 contracts of SRW Wheat; net short 259,000 Corn; net long 21,000 Soybeans; net short 47,000 lots of Soymeal, and; are net long 14,000 Soyoil.

Preliminary Open Interest saw SRW Wheat futures down roughly 6,100 contracts; HRW Wheat down 5,800; Corn down 19,800; Soybeans down 15,300 contracts; Soymeal up 1,300 lots, and; Soyoil down 2,400.

There were no changes in registrations—Registrations total 11 contracts for SRW Wheat; ZERO Oats; Corn ZERO; Soybeans ZERO; Soyoil 3,495 lots; Soymeal 511; Rice 106; HRW Wheat 17, and; HRS Wheat 488 contracts.

TODAY—WEEKLY DELIVERABLE STOCKS— 

Tender Activity—Ethiopia cancelled tender for 400,000t optional-origin wheat—

Winter Wheat Heading was 85% versus 77% last week, 81% a year ago, and 88% average

Winter Wheat Harvested was 7% versus 3% last week, 3% a year ago, and 7% average

—Winter Wheat was rated 51% good to excellent versus 51% last week and 64% a year ago

—30% fair versus 30% last week and 27% a year ago

—19% poor to very poor versus 19% last week and 9% a year ago

HRS Wheat plantings were 97% complete versus 99% average

HRS Wheat emergence 81% versus 91% average

—HRS Wheat was rated 82% good to excellent versus 80% last week and 81% a year ago

—17% fair versus 18% last week and 18% a year ago

—1% poor to very poor versus 2% last week and 1% a year ago

Corn plantings were 97% complete versus 94% average

Corn emerged was 89% versus 84% average

—Corn rated 75% g/ex versus 74% a week ago; 21% fair; 4% p/vp

Oats planted were 96% done versus 97% average

Oats emerged 91% versus 94% average

Oats heading 34% versus 36% average

—71% of the crop was rated good to excellent versus 71% last week (65% y/a)

—25% fair (25% last week); 4% poor to very poor (6% a year ago)

Soybean plantings were 86% complete versus 79% average

Soybeans emerged were 67% versus 61% average

—72% of the crop was rated good to excellent versus 70% last week (NA% y/a)

—24% fair (26% last week); 4% poor to very poor (NA% a year ago)

U.S. corn and soybeans finally got a much-needed burst of growth last week with significantly warmer temperatures, and Crop Watch planting wrapped on Saturday with the sowing of soybeans in North Dakota; but like the corn in North Dakota, only a portion of the soybean field was planted due to excessively wet conditions; the Crop Watch corn and soybeans were held back by cool and wet weather in May, so the recent warmth was welcome; crops are in mostly good condition now, but some issues have arisen for soybeans in the eastern states.

Yesterday’s U.S. weekly export inspections had

—Wheat exports running 64% behind a year ago (NA% last week) with the USDA currently forecasting a 2% decline on the year

—Corn 26% behind a year ago (28% last week) with the USDA down 14% for the season

—Soybeans 2% ahead of a year ago (up 3% last week) with the USDA having a 4% decrease forecasted on the year

U.S. pork exports to China hit an all-time high in April, but exports to all other destinations fell near four-year lows as the U.S. product has become pricier.

China’s food industry remained generally stable in the first four months of this year, according to the Ministry of Industry and Information Technology (MIIT); Industrial added-value of firms in the sector saw stable growth, with those of food manufacturers and agricultural by-product processors rising by 7.5 percent and 3 percent year on year respectively.

The forecast for Brazil’s second-corn crop output was cut for a third time to 65.3 million tonnes as persistent drought damaged fields, agribusiness consultancy AgRural said referring to farms in the Center-South, where most of the crop is grown; the previous forecast for second-corn output in the region was 66.7 million tonnes; second corn accounts for 75% of Brazilian total production every year.

Brazil’s total second-corn output will be an estimated 69.4 million tonnes in the 2019/2020 season, last year Brazil’s total second-corn production was an estimated 73.2 million, AgRural said.

Argentina will take over bankrupt soy-crushing giant Vicentin, with the aim of saving jobs and protecting the country’s food exporting sector, President Alberto Fernandez said; Argentina is the world’s No. 1 exporter of soymeal livestock feed and Vicentin is one of the country’s main producers; Vicentin, founded in 1929, was Argentina’s top exporter of processed soy and an iconic brand in the domestic food market.

From July 1, 2019 to May 28 this year, Russia exported 38.8 million tonnes of grain from July 1, 2019 to May 28,2020, or 7% less than a year earlier, the Center for Agricultural Analytics at the Agriculture Ministry reported; wheat supplies decreased 7.4% to 31.6 million tonnes; and barley by 19.8% to 3.6 million tonnes; exports of corn increased 33.4% to 3.4 million tonnes.

Soft wheat exports from the European Union in the 2019/20 season that started last July had reached 32.32 million tonnes by June 7, official EU data showed; that was 65% above the volume cleared by June 2 last year

—EU 2019/20 barley exports had reached 7.0 million tonnes, up 65% from the year-earlier period

—EU 2019/20 maize imports stood at 18.70 million tonnes, down 17%

European Union soybean imports in the 2019/20 season that started last July had reached 14.18 million tonnes by June 7, official EU data showed; that was 1% above the volume cleared by June 2 last year

—EU rapeseed imports in 2019/20 had reached 5.66 million tonnes, up 44% year on year

—Soymeal imports so far in 2019/20 were at 16.87 million tonnes, up 2%, while palm oil imports were down 11% at 5.35 million tonnes

Grain trade association Coceral lowered its forecast of soft wheat production this year in the European Union and Britain to 129.7 million tonnes from 135.4 million estimated last month

—in contrast, it raised its outlook for barley production in the EU and Britain to 63.4 million tonnes, against 61.5 million tonnes estimated in March

—lifted it maize harvest estimate to 66.8 million tonnes from 65.5 million tonnes previously

• FRENCH FARM MINISTRY FORECASTS 2020 WINTER RAPESEED PRODUCTION AT 3.46 MLN T, UP 0.1% FROM LAST YEAR
• FRENCH FARM MINISTRY CUTS ESTIMATE OF 2020 GRAIN MAIZE AREA TO 1.57 MLN HA FROM 1.60 MLN HA LAST MONTH
• FRENCH FARM MINISTRY CUTS ESTIMATE OF 2020 SOFT WHEAT AREA TO 4.59 MLN HA FROM 4.62 MLN HA LAST MONTH

India plans to hike edible oil import taxes to boost local supply

• India plans to raise import taxes on edible oils by 5%-sources
• Spends $10 billion annually on edible oil imports
• Indonesia, Malaysia, Argentina among its top suppliers