Global Ag News for June 1st

TODAY—-  CROP PROGRESS, EXPORT INSPECTIONS, FATS & OILSEEDS, GRAIN CRUSHINGS

Wheat prices overnight are up 14 in SRW, up 13 1/2 in HRW, up 36 in HRS; Corn is up 8 1/4; Soybeans up 11 1/2; Soymeal up $0.25; Soyoil up 0.25.

Markets finished last week with wheat prices up 15 1/2 in SRW, up 11 3/4 in HRW, up 78 3/4 in HRS; Corn is up 7 3/4; Soybeans up 19 3/4; Soymeal down $0.21; Soyoil up 0.93.

For the month to date wheat prices are down 57 1/4 in SRW, down 76 3/4 in HRW, down 1/4 in HRS; Corn is down 8 1/4; Soybeans up 7 3/4; Soymeal down $28.10; Soyoil up 3.65.

Chinese Ag futures (SEP 21) Soybeans up 26 yuan ; Soymeal up 20; Soyoil up 36; Palm oil down 20; Corn down 3 — Malasyian Palm is down 20. Malaysian palm oil prices overnight were down 20 ringgit (-0.51%) at 3899 extending losses toward a one-week low as traders weighed signs of deteriorating demand for the tropical oil.

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

The player sheet had funds net sellers of 5,000 contracts of SRW Wheat; sellers of 17,500 corn, sellers of 4,000 soybeans, buyers of 3,500 Soymeal, and; net sellers of 3,5lots of Soyoil.

Preliminary changes in futures Open Interest as of May 28 were: SRW Wheat down 2,107 contracts, HRW Wheat down 667, Corn down 935, Soybeans down 527, Soymeal down 2,417, Soyoil up 2,928.

There were no changes in registrations. Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 13 Soybeans; 1,003 Soyoil; 442 Soymeal; 1,249 HRW Wheat.

TENDERS

• WHEAT PURCHASE: Flour millers in Indonesia bought 60,000 tonnes of Black Sea-origin wheat this week
• RUSSIA TO SUPPLY SYRIA WITH MORE WHEAT: Russia has supplied 350,000 tonnes of wheat to Syria since March, the Interfax news agency reported, citing the Russian embassy. Russia plans to supply Syria with up to 1 million tonnes of wheat in 2021, the news agency added.
• Saudi Arabia’s state grain organisation (SAGO) has agreed to buy 562,000 tonnes of wheat for delivery between August and September at $299.55 average price per tonne
• Algeria’s state grains agency OAIC is believed to have purchased at least 200,000 tonnes durum wheat to be sourced from optional origins in a tender which closed last week
• Indonesia’s state procurement agency Bulog has issued an international tender buy and import about 240,000 tonnes of animal feed wheat

PENDING TENDERS

• FEED WHEAT TENDER: Indonesia’s state procurement agency Bulog issued an international tender to buy and import about 180,000 tonnes of animal feed wheat
• WHEAT TENDER: Algeria’s state grains agency OAIC issued an international tender to purchase a nominal 50,000 tonnes of durum wheat
• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat
• WHEAT TENDER: Saudi Arabia’s main state wheat buying agency, the Saudi Grains Organization (SAGO), issued an international tender to purchase about 720,000 tonnes of wheat
• FEED WHEAT AND BARLEY TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said it will seek 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by Sept. 30 and arrive in Japan by Nov. 25, via a simultaneous buy and sell (SBS) auction that will be held on June 2.

CROP SURVEY: U.S. Soybean Crush and Corn for Ethanol

The following is from a Bloomberg survey of seven anlaysts.

• Soybean crush seen at 170.9m bu in April, a 6.8% drop from year ago
• Crude and once-refined soybean-oil reserves at end of April seen at 2.178b lbs, down from 2.601b
• Corn used in ethanol production seen up 69% y/y to 414m bu
• The USDA is scheduled to release its April Fats and Oils report along with the Grain Crushings report on June 1 at 3pm

Duty-Free Edible Oils From Nepal to Hit Indian Processors: Group

Duty-free shipments of refined soybean oil and palm oil from neighboring Nepal will hurt Indian processors and farmers, according to Solvent Extractors’ Association.

• India imported 215,000 tons of processed soybean oil and 3,000 tons of RBD palm olein from Nepal in 10 months ended April 30
• Refined soybean oil and RBD palm olein purchases totaled 95,000 tons and 169,000 tons respectively in the 12-month period ended June 2020
• NOTE: Duty-free imports are allowed from Nepal under the Agreement on South Asia Free Trade Area

Late Arrival of Monsoon Rains in India May Delay Sowing of Crops

Sowing of major crops such as rice, corn and soybeans may be delayed in India as the southwest monsoon, which waters more than half of the country’s farmland, is expected to reach the mainland two days later than usual.

The monsoon will likely arrive the southern state of Kerala on Thursday, according to a statement posted by the India Meteorological Department on its website. The national weather forecaster had earlier predicted an onset date of May 31 for the June-September rainy season, which typically starts on June 1.

Availability of quality seeds a concern for soybean farmers in Maharashtra

With Kharif season all set to kick off, availability of quality soybean seeds has become a cause for concern for farmers in Maharashtra.

Farmers in Madhya Pradesh – the largest seed-producing state in India- have reported rain damage to their crop last year, which can lead to a tight situation in terms of seed supply in other parts of the country. Besides, due to the rain-induced damage, concerns are also being raised over quality of the seeds.

Being an open pollination variety (OPV), soybean seeds can be reused by farmers for their next crop. Companies tie up with farmers to procure superior quality seeds, which they process, treat and bag for selling.

Sales decrease in the Brazilian spot, but number of term contracts increases

Soybean prices have swung widely this week in the Brazilian market. Devaluations were influenced by the favorable weather to soybean crops in the United States, the harvesting in Argentina, and the end of activities in Brazil, while valuations reflected low inventories in the USDA and the disinterest of soybean farmers in selling the product in the spot market – in this case, the gap between asking and bidding prices was wide. Thus, the trading pace for delivery in the second semester of 2021 has increased.

Despite the increases in the export premiums for delivery in June, for shipments in the coming months premiums are still low. At Paranaguá port (PR), while the export premium for soybean is currently at -10 cents of dollar per bushel for shipment in June/21, for shipment in August and in September, premiums are at 55 cents of dollar and at 1.50 USD/bushel, respectively. For February/22, premiums have been at 54 cents of dollar/bushel.

Malaysia’s May 1-31 Palm Oil Exports 1,423,104 Tons: AmSpec

Shipments rise 1.6% from 1,400,724 tons exported during April 1-30, according to AmSpec Agri on Monday.

Indonesia Raises CPO Reference Price to $1,223.9/Ton for June

Musdalifah Mahmud, a deputy at the Indonesia’s Coordinating Ministry for Economic Affairs, said by text messages on Monday.

• NOTE: The tax rate for palm oil export will be at $183/ton, according to Finance Ministry regulation
• Govt keeps the additional levy that exporters must pay unchanged at $255/ton, according to Eddy Abdurrachman, president director of the Indonesia Oil Palm Plantations Fund Management Agency

Egypt Boosts Vegetable Oil Prices on Higher Import Costs

Food oil price to rise to 21 Egyptian pounds/liter starting June 1, Supply Ministry says in a statement.

• Ministry says from Dec to May, price of imported soybean oil rose from $860/ton to $1,263/ton; Sunflower oil prices rose by 55% in same period
• Govt to form committee to review oil stockpiles, contracts every 3 months

Canola shines bright as West Australian crop set to reap top

Record plantings, early rain and a global shortage of oilseed crops could set up West Australian farmers for a $2 billion canola harvest.

Farmers across Australia are expected to sow almost 2.9 million hectares of canola, with more than half of that to be planted in Western Australia.

As the canola price soared, most West Australian farmers enjoyed strong season-opening rain, allowing them to increase their canola planting area to 1.5 million hectares.

China to Sell Imported Corn to Qualified Grain Processing Mills

Sinograin, China’s state stockpiler, will offer imported corn to qualified grain processing units, the company said in a statement on Monday.

• Details related to sale volume, timing of the offer or the origin of corn were not announced
• The company asks qualified mills, including those that can process genetically-modified corn, to make bids
• Mills will not be allowed to resell the grain
• Most-active corn futures at Dalian -0.6% at 2,666 yuan/ton Monday, the lowest since April 14

WHEAT/CEPEA: Dollar depreciation favors imports

The recent depreciation of the US dollar against the Real has made wheat imports from Argentina and Paraguay more attractive to Brazilian purchasers than buying the product in the domestic market.

Based on data from Conab, between May 17 and 21, the import parity for the wheat from Argentina sold in Paraná was at 285.47 USD/ton. Considering the average dollar in that period, at 5.2813 BRL, the price of the product imported was 1,507.65 BRL/ton, while for the Brazilian wheat traded in the same state, prices averaged 1,643.55 BRL/ton.

In Rio Grande do Sul, the import parity for the wheat from Argentina was 267.44 USD/ton (1,412.45 BRL/ton) – against 1,601.32 BRL/ton on the average of RS State, according to Cepea surveys.

According to data from Secex (Foreign Trade Secretariat), until the third week of May, Brazil was importing 29.71 thousand tons of wheat per day, on average, against 23.36 thousand tons in May 2020, 27.19% up. The average import value this month is at 271.5 USD per ton FOB origin, 21.63% higher than that in the same period last year (223.2 USD/ton).

Russian Wheat Exports Increase 7% So Far This Season: Agency

Wheat shipments for the current season totaled 36.5m tons as of May 27, the Federal Center of Quality & Safety Assurance for Grain & Grain Products said on its website, citing inspections before exports.

Monsoon likely to hit India’s southwest coast around June 3- weather office

Monsoon rains are likely to hit India’s southern coast around June 3, largely in line with typical patterns, the state-run India Meteorological Department said in its latest revised forecast on Sunday.

• The latest weather forecast showed that southwesterly winds could strengthen further gradually from June 1, resulting in a likely enhancement in rainfall over the southern state of Kerala, the forecast said. “Hence the monsoon onset over Kerala is likely to take place by 3rd June 2021,” it said.
• Nearly half of India’s farmland has no irrigation and depends on annual June-September rains to grow crops such as rice, corn, cane, cotton and soybeans.
• India’s weather office said last month the country was expected to get average monsoon rains this year, raising expectations of higher farm output, which is central to the country’s economy.

India’s monsoon rains forecast to be 101% of average in 2021

India is likely to receive 101% rainfall of a long-term average this year, the weather office said, upgrading its previous forecast and raising expectations for higher farm output in the country, which is reeling from a second COVID-19 wave.

• The monsoon is expected to be well distributed, and most parts of the country are expected to receive an average to an above-average amount of monsoon rains in 2021, Mrutyunjay Mohapatra, director general of the state-run India Meteorological Department (IMD), told a news conference.
• The IMD defines average, or normal, rainfall as between 96%and 104% of a 50-year average of 88 centimetres for the entire four-month season beginning in June.

Ukraine 2021 spring grain sowing 96% complete

Ukrainian farms have almost completed the 2021 spring grain sowing, seeding 7.2 million hectares, or 96% of the expected area as of May 27, the agriculture ministry data showed on Friday.

• The economy ministry has said that favourable weather could help Ukraine harvest at least 75 million tonnes of grain this year, versus 65 million tonnes in 2020.
• Ukraine’s agriculture minister Roman Lyshchenko said this week the country could harvest 100 million tonnes of grains and oilseeds in 2021.
• The agriculture ministry said the overall grain area is likely to total 15.5 million hectares this year, including 7.6 million hectares of spring grains.
• The ministry has said the 2021 area for sunflowers could total 6.4 million hectares, soy beans 1.4 million hectares and sugar beet 226,900 hectares.

Egypt procures 3.2 million tonnes of local wheat in harvest – ministry

Egypt has so far procured 3.2 million tonnes of local wheat during its harvest season which began mid-April, the supply ministry said on Saturday. The country’s strategic wheat reserves were sufficient to cover more than six months of consumption, the ministry added.

Brazil’s BRF says cultured meat products may be available commercially by 2023 or 2024

Brazil’s largest poultry processor, BRF SA BRFS3.SA, said the cultured meats it is developing in partnership with an Israeli company may be commercially available by 2023 or 2024, according to remarks by Chief Executive Lorival Luz during a sustainable food panel on Monday.

Cultured meats are produced in vitro using animal cells rather than from slaughtering. Luz said the method is sustainable, for example because it uses less water.

Russian wheat export prices down with global benchmarks

Russian export prices for the summer’s new wheat crop fell last week after a decline in global benchmarks in Chicago Wv1 and Paris BL2U1, the IKAR agriculture consultancy said in a note on Monday.

Prices for new-crop Russian wheat with 12.5% protein loading from Black Sea ports and for supply in the second half of July were at $256 a tonne free on board (FOB) at the end of last week, down $4 from the previous week, IKAR said. 0#IKAR

Indonesia crude palm oil ref price set higher in June- official

Indonesia has set its crude palm oil reference price higher in June at $1,223.9 a tonne, the country’s deputy minister for food and agriculture Musdhalifah Machmud told Reuters said on Monday.

This compares with May’s reference price of $1,110 per tonne. It means the export taxes for crude palm oil in June will be higher at $183 per tonne of crude palm oil, while export levies for the edible oil will be unchanged at $255 per tonne.

 Ukraine grain exports fall 23% so far in 2020/21 season -ministry

KYIV, May 31 (Reuters) – Ukraine’s grain exports have fallen by 23% in the first 11 months of the 2020/21 July-June season to 41.85 million tonnes, agriculture ministry data showed on Monday.

• The volume included 15.88 million tonnes of wheat, 21.14 million tonnes of corn and 4.17 million tonnes of barley, the data showed.
• Ukraine, which harvested around 65 million tonnes of grain in 2020, plans to export around 45.8 million tonnes this season.

IKAR Raises Russia 2021 Wheat Crop Outlook to 79.5 Million Tons

That compares with a prior forecast of 79 million tons, IKAR Director General Dmitry Rylko said by email. Eastern parts of the wheat belt are facing dryness, while conditions are improving across southern, western and central parts of the Volga region, he says 

Malaysia Palm Oil Farms Can Run With Optimum Workers in Lockdown

All commodity operations at farms such as planting, harvesting, fertilizing and transport will be allowed with an ‘optimum’ workforce during Malaysia’s new lockdown, according to Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali.

Brazil on drought alert, faces worst dry spell in 91 years

Brazil’s government agencies warned of droughts this week as the country faces its worst dry spell in 91 years, increasing fears of energy rationing, hitting hydroelectric power generation and agriculture while raising the risk of Amazon fires.

The lack of rain across much of Brazil has negative implications for grain cultivation, livestock and electricity generation, as Brazil relies heavily on hydro dams for its power. The dry weather could lead to severe fires in the Amazon rainforest and Pantanal wetlands, scientists said.