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Global Ag News For Jan 6 22


Wheat prices overnight are down 4 3/4 in SRW, down 8 1/4 in HRW, down 12 in HRS; Corn is down 1 3/4; Soybeans down 16 1/2; Soymeal down $0.53; Soyoil down 0.44.

For the week so far wheat prices are down 14 3/4 in SRW, down 22 3/4 in HRW, down 45 3/4 in HRS; Corn is up 7 1/4; Soybeans up 39; Soymeal up $0.90; Soyoil up 2.47.

Chinese Ag futures (MAY 22) Soybeans up 23 yuan ; Soymeal down 27; Soyoil down 46; Palm oil up 2; Corn down 16 — Malasyian Palm is down 51. Malaysian palm oil prices overnight were down 51 ringgit (-1.01%) at 4985.

There were no changes in registrations. Registration total: 1,900 SRW Wheat contracts; 25 Oats; 50 Corn; 573 Soybeans; 143 Soyoil; 0 Soymeal; 92 HRW Wheat.

Preliminary changes in futures Open Interest as of November 29 were: SRW Wheat down 9,171 contracts, HRW Wheat down 4,356, Corn down 63,981, Soybeans down 2,782, Soymeal down 9,174, Soyoil down 3,486.

Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana Forecast: Scattered showers Wednesday. Isolated showers north Thursday-Sunday. Temperatures near normal Wednesday-Friday, near to below normal Saturday-Sunday. Mato Grosso, MGDS and southern Goias Forecast: Scattered showers through Sunday. Temperatures near normal through Sunday.

Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires Forecast: Mostly dry through Sunday. Temperatures near to below normal Wednesday-Friday, near to above normal Saturday, above normal Sunday. La Pampa, Southern Buenos Aires Forecast: Mostly dry through Sunday. Temperatures near to below normal Wednesday-Friday, near to above normal Saturday, above normal Sunday.

The player sheet for Jan. 5 had funds: net sellers of 5,000 contracts of  SRW wheat, sellers of 5,500 corn, sellers of 2,000 soybeans, sellers of 1,500 soymeal, and  buyers of 3,000 soyoil.


  • WHEAT AND BARLEY PURCHASE: Tunisia’s state grains agency is thought to have purchased about 125,000 tonnes of soft wheat, 75,000 tonnes of durum wheat and 75,000 tonnes of animal feed barley in international tenders on Wednesday
  • WHEAT PURCHASE: Jordan’s state grains buyer purchased 60,000 tonnes of wheat to be sourced from optional origins in a tender which closed on Wednesday
  • SOYBEAN SALE: The U.S. Department of Agriculture confirmed private sales of 132,000 tonnes of U.S. soybeans to unknown destinations for delivery in the 2022/23 marketing year that begins Sept. 1, 2022.
  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice


  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice with import using land transport by railway
  • WHEAT TENDER: Iraq’s state grains buyer issued a tender to buy a nominal 50,000 tonnes of milling wheat with a limited number of trading companies asked to offer

GRAIN EXPORT SURVEY: Corn, Soy, Wheat Sales Before USDA Report

U.S. Corn, Soy Yields Seen Slightly Above USDA Forecasts: Survey

U.S. corn and soybean yields for 2021 are expected to end up slightly higher than current government estimates calling for bumper crops, according to a Farm Futures’ farmer survey.

  • Corn yield is seen at 177.2 bushels per acre when the USDA issues its January supply-and-demand report next week, topping an earlier estimate of 177.0, an email poll of 613 growers in December shows
    • If the USDA leaves the 2021 corn harvested area unchanged at 85.1m acres, overall production will remain the second largest on record
  • Soy yield is seen at 51.4 bpa, above the USDA’s estimate of 51.0 bpa
    • The slight increase would boost overall output to the biggest on record: Farm Futures
  • U.S. corn export prospects are less bullish in the new year as Chinese demand eases from last year’s record, though “domestic usage potential for ethanol and livestock usage are strong” going into 2022, analyst Jacqueline Holland says in statement
  • Moderating Chinese demand and another record Brazilian crop are likely to lower U.S. soybean exports vs last year, though domestic demand should sustain prices amid a biofuel push relying on soy oil
    • Tight global vegetable oil supplies also “bode favorably for soybean prices in the new year”: Holland

Brazil Soy Exports Seen Reaching 3.375 Million Tns In January – Anec


Mato Grosso Sees Disappointing Yields as Soy Harvest Kicks Off

Soybean yields in Brazil’s biggest producing state were disappointing but expected to improve next week when the bulk of the harvest commences, according to Coacen and Cooami, two of the biggest cooperatives in the Mato Grosso.

  • First-harvested areas were irrigated plots with a shorter growth season to allow an appropriate planting window for corn planting that occurs just after the soy harvest
  • Excessive rain and lack of sunshine caused fungus and harvest delays on soybeans, says Marco Antonio dos Santos, a meteorologist at Rural Clima in Valinho

Barchart Releases South American Crop Production and Yield Forecasts

  • End of season Argentina corn production is forecast at 54M kg with a yield of 7,707 kg/Hectare. This compares to the USDA FAS’ 54M kg of production and 7,271 kg/Hectare yield.
  • End of season Argentina soybean production is forecast at 45M kg with a yield of 2,556 kg/Hectare. This compares to the USDA FAS’ 49M kg of production and 2,738 kg/Hectare yield.
  • End of season Brazil corn production is forecast at 117M kg with a yield of 5,595 kg/Hectare. This compares to CONAB’s 117M kg of production and 5,596 kg/Hectare yield.
  • End of season Brazil soybean production is forecast at 137M kg with a yield of 3,406 kg/Hectare. This compares to CONAB’s 143M kg of production and 3,538 kg/Hectare yield.

Ethanol Prices Plunge as Fuel Demand Dips and Stockpiles Swell

Spot ethanol prices in Chicago tumbled to the lowest level since early September as fuel demand declined last week.

  • The biofuel blended into gasoline fell to $2.27 a gallon Wednesday and has fallen nine out of the last ten sessions
  • NOTE: U.S. stockpiles of ethanol last week rose to the highest level since August while production slightly fell
    • Demand for gasoline also declined; winter storms and fresh Covid concerns may be behind the drop, as well as retailers working down inventories after a pre-holiday buildup
  • Renewable Fuels Association President Geoff Cooper said it’s common to see a “V-shaped curve” for ethanol blending and gasoline consumption in the weeks around the Christmas and New Year holidays
    • “The second week of January typically shows a big bounce back in blending activity and consumption,” though events like big winter storms can at times disrupt the trend

Top Palm Oil Grower Indonesia Warns Inflation May Hit Prices

Indonesia, the world’s top oil palm grower, is finding it isn’t immune to the impact of soaring prices as it plans to subsidize cooking oil sold locally.

The government will spend 3.6 trillion rupiah ($250 million) of funds raised from palm oil export levy to temper cooking oil prices by paying for the price gap and scrapping tax on 1.2 billion liters of edible oil, Coordinating Minister for Economic Affairs Airlangga Hartarto said in a press briefing on Wednesday.

Palm oil, the world’s most consumed edible oil, surged to a record in October and posted a third straight year of gains. That added to concerns about global food inflation at a time when supply chains are hit by bad weather, Covid-19 disruptions and labor shortages. Prices of crude palm oil climbed for a fourth day to 5,037 ringgit a ton on Wednesday and are expected to stay elevated in the first quarter.

New bird flu has higher risk of spread to humans -animal health director

A wave of bird flu in Asia and Europe has a greater risk of spreading to humans because of a high number of variants, the World Organisation for Animal Health (OIE) said.

The spread of highly pathogenic avian influenza, commonly called bird flu, has raised concern among governments and the poultry industry after previous outbreaks led to the culling of tens of millions of birds and trade restrictions.

“This time the situation is more difficult and riskier because we see more variants emerge, which make them harder to follow,” OIE Director General Monique Eloit told Reuters in an interview on Wednesday.

“Eventually the risk is that it mutates or that it mixes with a human flu virus that can be transmitted between humans then suddenly it takes on a new dimension,” she added.

Fifteen countries had reported outbreaks of bird flu in poultry between October and the end of December, mostly the H5N1 strain. Italy was the worst hit in Europe with 285 outbreaks and nearly four million birds culled, OIE data showed.

Outbreaks generally start in the autumn, when the infection is spread by migrating wild birds.

H5N1 is one of the few bird flu strains that has passed to humans. In total around 850 people have been reported to be infected with the strain, of which half died, the OIE said.

Last year several people were infected by the H5N6 strain in China, raising concern among some experts, who say a previously circulating strain appears to have changed and may be more infectious to people.

Eloit stressed, however, that most countries had learned to contain outbreaks and transmissions to humans would be sporadic as bird flu is usually passed through close contact.

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