Global Ag News June 30th

TODAY — QUARTERY GRAIN STOCKS, ACERAGE, EIA WEEKLY ENERGY

Wheat prices overnight are down 3 1/2 in SRW, down 5 1/4 in HRW, down 8 1/2 in HRS; Corn is down 7 3/4; Soybeans down 5 1/2; Soymeal up $0.19; Soyoil down 0.99. For the week so far wheat prices are up 1 3/4 in SRW, up 12 3/4 in HRW, down 2 in HRS; Corn is up 21 1/2; Soybeans up 37; Soymeal up $0.07; Soyoil up 3.06. For the month to date wheat prices are down 24 1/2 in SRW, up 1 1/4 in HRW, up 72 1/2 in HRS; Corn is down 4 3/4; Soybeans down 65 3/4; Soymeal down $37.80; Soyoil up 1.51.

Chinese Ag futures (SEP 21) Soybeans up 51 yuan ; Soymeal up 16; Soyoil up 120; Palm oil up 134; Corn down 7 — Malasyian Palm is up 49. Malaysian palm oil prices overnight were up 49 ringgit (+1.38%) at 3602 on optimism that a reduction in import tax by top world buyer India will boost demand for the tropical oil.

Midwest corn, soybean and winter wheat forecasts: West: Scattered showers Tuesday, south Wednesday. Mostly dry Thursday-Saturday. Temperatures near normal through Thursday, near to below normal Friday, near to above normal north and below normal south Saturday. East: Scattered showers through Thursday. Isolated showers east Friday-Saturday. Temperatures near to above normal through Wednesday, near normal Thursday, near to below normal Friday-Saturday. 6 to 10 day outlook: Mostly dry Sunday. Isolated showers Monday-Thursday. Temperatures near to below normal south and above normal north Sunday, near to above normal Monday-Thursday.

The player sheet for 6/29 had funds: net sellers of 3,000 contracts of  SRW wheat, buyers of 2,000 corn, sellers of 2,500 soybeans, sellers of 1,000 soymeal, and  buyers of 3,500 soyoil.

Preliminary changes in futures Open Interest as of June 29 were: SRW Wheat down 8,527 contracts, HRW Wheat down 6,262, Corn down 37,072, Soybeans down 7,240, Soymeal down 675, Soyoil down 6,727.

There were changes in registrations (-18 Soymeal). Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 13 Soybeans; 668 Soyoil; 424 Soymeal; 1,249 HRW Wheat.

TENDERS

• CORN, BARLEY AND SOYMEAL TENDER: Iranian state-owned animal feed importer SLAL issued international tenders to purchase up to 60,000 tonnes of corn, 60,000 tonnes of animal feed barley and 60,000 tonnes of soymeal
• WHEAT TENDER: Iranian state agency the Government Trading Corporation (GTC) issued an international tender to purchase about 60,000 tonnes of milling wheat
• FEED WHEAT TENDER: A group of importers in Thailand issued an international tender to purchase up to 197,700 tonnes of animal feed wheat
• WHEAT AND BARLEY TENDER: Tunisia’s state grains agency issued an international tender to purchase some 100,000 tonnes of soft wheat and 100,000 tonnes of animal feed barley

PENDING TENDERS

• WHEAT TENDER: Turkey’s state grain board TMO issued an international tender to purchase a total of about 395,000 tonnes of red milling wheat
• WHEAT TENDER: Jordan’s state grain buyer issued a tender to buy 120,000 tonnes of wheat, with a bidding deadline of July 6
• WHEAT TENDER: The Ethiopian government issued an international tender to buy about 400,000 tonnes of optional-origin milling wheat,
• WHEAT TENDER: Bangladesh’s state grains buyer has issued another international tender to purchase 50,000 tonnes of milling wheat

India Cuts Import Tax Rate On Crude, Refined Palm Oil Until September 30

India cut basic customs tax on crude palm oil to 10% from 15% and that on refined palm oil to 37.5% from 45% effective today, a government statement said.

The effective tax rate, including cess and other charges, on crude palm oil will total 30.25% and that on refined palm oil will be 41.25%.  The revised tax structure will be valid until Sep. 30.

Argentina says farmers have sold 23 mln T of 2020/21 soybeans

Argentine farmers have sold 23 million tonnes of soy from the 2020/21 season, after transactions were registered over the last week for 518,800 tonnes, the ministry of agriculture reported on Tuesday in a report with data updated through June 23.

The rhythm of soybean sales is behind that of the previous season. On the same date last year sales of 25.8 million tonnes of soybeans had been registered, according to official information.

The recently harvested 2020/21 soybean harvest in Argentina is estimated at 43.5 million tonnes, according to the Buenos Aires Grains Exchange, compared with 49 million tonnes collected in the previous season.

Argentina needs foreign exchange from exports to boost its battered economy, which has been going through a period of stagflation for two years, aggravated by the COVID-19 pandemic.

The government also said that sales of 2020/21 corn have totaled 31.1 million tonnes, about 3 million tonnes more than at the same time last year. The 2020/21 harvest is still ongoing. The exchange expects a corn harvest this season of 48 million tonnes.

Canada’s Canola Acres at Highest in Three Years Amid Rally

• Prices expected to hold firm in the coming year, says StatsCan
• Canadian farmers boost plantings of soybeans, cut field peas

Farmers in Canada are planting the most canola in three years just as prices soar to a record.

Statistics Canada raised its forecast for canola acres seeded this season as prices on ICE Futures U.S. jumped to a fresh peak amid record exports and low inventories. The bullish factors likely prompted farmers in Canada, the world’s biggest grower of canola, to seed more of the crop used in cooking oil and biofuel.

An extreme heatwave moving eastward through the Prairie provinces of Alberta and Saskatchewan is threatening to reduce yields of canola crops that are vulnerable to high temperatures during the flowering stage.

Dry Heat Stressing Manitoba Crops and Lowering Yield Potential

Crops in the Canadian agricultural province are stressed by high temperatures, strong winds and a lack of widespread rainfall, Manitoba government said in a weekly crop report on Tuesday.

• Fungicide use on cereals and canola unlikely on many fields due to expectation for lower yield potential
  • Dry and windy weather “less than ideal” for pesticide spraying
• Many crops are maturing into reproductive stages faster than expected due to drought stress
• First hay harvest is underway with yields ranging from 50%-80% of normal, though quality is high
  • Alfalfa weevil causes yield losses in forage crops in parts of Eastern and Interlake regions

IGC raises forecast for 2021/22 global corn crop – MIST

The International Grains Council (IGC) raised its forecast for global corn (maize) production in the 2021/22 season mainly driven by an improved outlook for number two producer China.

• In its monthly update, the inter-governmental body raised its global corn production outlook by 7 million tonnes to a record 1.201 billion tonnes.
• It raised China’s 2021/22 corn crop forecast to 272.8 million tonnes from 267.3 million.
• The IGC trimmed its forecast for the 2021/22 global wheat crop by 1 million tonnes to a still record 789 million tonnes.
• The report noted, however, that despite record crops of corn and wheat there would only be a marginal rise in global grain stocks in 2021/22.

Argentina to offer 1-year contract to dredge Parana grains transport river

Argentina will offer a one-year contract to maintain the dredging of the Parana River, the country’s key grains export superhighway, while the government prepares a longer concession, Transport Minister Alexis Guerrera said on Tuesday.

The country’s most important logistics system has been managed for 25 years by Belgian dredger Jan de Nul. The company is dredging the river under a 90-day contract it was awarded in April, and is expected to bid for the upcoming concessions.

The Parana River has made the South American grains powerhouse one of the world’s most efficient food exporters. Huge cargo ships can be loaded directly at Rosario and avoid the inefficient barges and trucking that bog down shipping in rival exporters Brazil and the United States.

The river at Rosario is currently dredged to about 34 feet deep. Industry leaders want the next contract to provide for a deeper and wider shipping channel to improve navigability.

Malaysia’s June 1-30 Palm Oil Exports 1,545,780 Tons: AmSpec

Shipments during the period increased 8.6% from 1,423,104 tons exported during May 1-31, according to AmSpec Agri on Wednesday.

 China to Sell 123,977 Tons U.S. Corn From Reserves on Friday

Sinograin, the state stockpiler, will offer 123,977 tons of U.S. corn from state reserves at an auction on Friday, co. said in a statement.

• The genetically-modified corn from the 2020 harvest was stored in the northeast province of Liaoning and southeast province of Fujian
• Separately, Sinograin will continue to offer Ukraine corn on Friday; it will sell 31,539 tons stored in Shandong and Guangdong
• Co. sold 75% of 18,207 tons offered on June 25

Brazil Corn Exports Seen Reaching 89,213 Tns In June Versus 123,940 Tns Forecast In Previous Week – Anec – Reuters

• BRAZIL SOY EXPORTS SEEN REACHING 10.25 MILLION TNS IN JUNE VERSUS 10.3 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
• BRAZIL SOYMEAL EXPORTS SEEN REACHING 2.025 MILLION TNS IN JUNE VERSUS 2,03 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
• BRAZIL CORN EXPORTS SEEN REACHING 89,213 TNS IN JUNE VERSUS 123,940 TNS FORECAST IN PREVIOUS WEEK – ANEC

 IKAR ups 2021 Russian wheat harvest forecast to 83.6 mln tonnes – Interfax Russia & CIS Business and Financial Newswire

The Institute for Agricultural Market Studies (IKAR) has raised its forecast for the wheat harvest in Russia in 2021 from 82 million tonnes to 83.6 million tonnes, IKAR CEO Dmitry Rylko told Interfax.

• “Our new forecast is 83.6 million tonnes,” Rylko said.
• According to him, the forecast for the wheat harvest in the Volga and Ural federal districts has been reduced somewhat. “The eastern part of the Volga region has been seized by drought, which will have a negative impact on the wheat harvest. Spring wheat has also been slightly affected by it. Rain fell in the Urals recently after dry weather, but it won’t drastically change the situation,” Rylko said.
• The forecast for Siberia is unchanged. “Recent rain has saved the situation there, but in any case it is still not ideal,” he said.
• The institute has slightly raised the wheat harvest estimate in the central regions.
• According to the forecast of the Russian Agriculture Ministry, the wheat harvest this year will amount to 80.7 million tonnes, and the overall grain harvest to 127.4 million tonnes.

Russia’s Wheat Exports Seen Just Below a Record for June: IFX

Russia’s wheat exports for June may reach 2.6m tons, just below a record for that month set in 2018, Interfax reports, citing the head of analytical center RusAgroTrans Igor Pavensky.

• June 2018 record was 2.69m tons
• Exports from March-May were only about 2m tons due to fixed export tax of EU50 per ton, Pavensky said
• Sees wheat harvest decreasing slightly in new season starting in July; forecasts harvest in new season at 84.5m tons, with potential exports of 41.5m tons