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Global Ag News for June 20.23

TOP HEADLINES

Zimbabwe 2023-24 Corn Production Forecast to Rise 4.8%

Zimbabwe’s corn production is expected to rise 4.8% on year in the marketing year through April 2024, largely due a normal rainfall season in the northern region, the U.S. Agriculture Department said late Thursday.

Production is projected to rise to 1.52 million metric tons in the 2023-24 marketing year from 1.45 million tons a year earlier, the USDA said.

Corn area planted is expected to drop by 5% to 1.8 million hectares (1 hectare is 2.47 acres) in the 2023-24 marketing year due to the lack of availability and cost of fertilizer, seed, fuel and pesticides, it said.

Zimbabwe will have to import at least 450,000 tons of corn in 2023-24 to meet local demand.

Zimbabwe’s corn production is projected to have fallen by 41% on year in the marketing year through April 2023, largely due to unfavorable weather conditions, it said.

In addition, farmers’ ability to optimize corn production in 2022-23 was also obstructed by ongoing macroeconomic challenges as well as relatively high input costs, especially for fuel and fertilizer, it said.

In the 2022-23 marketing year, Zimbabwe imported an estimated 220,000 ton of corn mainly from South Africa and Zambia.

In February 2022, the Zimbabwean government lifted the ban on corn imports that had been in place since May 2021 due to a bumper harvest, the USDA said.

earth and sunrising

FUTURES & WEATHER

Wheat prices overnight are down 9 in SRW, down 11 1/4 in HRW, down 8 in HRS; Corn is down 3 3/4; Soybeans down 10; Soymeal down $4.50; Soyoil down 0.59.

Markets finished last week with wheat prices up 46 1/4 in SRW, up 34 in HRW, up 33 3/4 in HRS; Corn is up 44 3/4; Soybeans up 123 1/4; Soymeal up $28.60; Soyoil up 5.36.

For the month to date wheat prices are up 84 1/2 in SRW, up 42 1/2 in HRW, up 66 in HRS; Corn is up 72; Soybeans up 185 3/4; Soymeal up $33.80; Soyoil up 11.13.

Year-To-Date nearby futures are down 14.3% in SRW, down 6.3% in HRW, down 10.1% in HRS; Corn is down 5.2%; Soybeans down 3.4%; Soymeal down 13.3%; Soyoil down 7.1%.

Chinese Ag futures (SEP 23) Soybeans up 9 yuan; Soymeal up 57; Soyoil up 30; Palm oil up 30; Corn up 4 — Malaysian palm oil prices overnight were down 20 ringgit (-0.53%) at 3737.

There were no changes in registrations. Registration total: 2,389 SRW Wheat contracts; 2 Oats; 0 Corn; 0 Soybeans; 1,088 Soyoil; 11 Soymeal; 97 HRW Wheat.

Preliminary changes in futures Open Interest as of June 16 were: SRW Wheat down 12,348 contracts, HRW Wheat down 1,536, Corn up 12,201, Soybeans up 7,942, Soymeal up 2,880, Soyoil down 2,401.

Northern Plains: A system went through with only isolated showers over the holiday weekend, and missed some of the driest areas in the eastern Dakotas. A slow-moving front took its place however, and should provide some strings of showers throughout the week until a system goes through on Friday and Saturday that is forecast to bring more widespread showers and thunderstorms. Ahead of this front, temperatures are hot with many areas eclipsing 90 degrees F. If showers disappoint, crop conditions will continue to decline and drought will expand. Temperatures should be more variable after the system moves through this weekend.

Central/Southern Plains: Areas of showers and thunderstorms have moved through over the last several days, especially in a band between Colorado and Oklahoma, where heavier rain and severe weather have caused some flooding and damage. Heat has built in over Texas and has expanded north, a consistent feature until a system moves through this weekend. Temperatures will be more variable after its passage, but Texas will still remain hot. More rounds of showers and thunderstorms are forecast until that system moves through, and may even continue next week as well. Conditions for developing corn and soybeans is dependent on rainfall frequency. Those areas with consistent rainfall are more able to withstand the heat stress.

Western Midwest: A system clipped western and southern areas of the region over the long holiday weekend. Some areas of good rain fell, but were not widespread. Some areas ended up dry and are seeing temperatures increase into the 90s this week. The system continues to spin over the Southeast and though uncertain, may spread some showers into eastern areas later this week. Following that, a system will move through with more widespread showers and thunderstorms this weekend into early next week, with potential for continued showers for a couple of days and another system late next week or weekend to do something similar. Areas missing out are seeing stress increase for both corn and soybeans, though not all areas are dealing with harsh conditions. The coming rainfall is forecast to only be a stop-gap in the poorer conditions, but the pattern does favor better chances for rain after this week.

Delta: Several disturbances brought heavy showers and severe weather through the region over the last week. Though damage has been reported, the increased soil moisture is turning around dryness concerns. Though less active for the next week, there will be some additional chances for showers and thunderstorms in the region.

Canadian Prairie: Another system moved into the region over the weekend and brought heavy rain to parts of Alberta and Saskatchewan again. The system will be in place through Thursday, though showers will become more isolated each day this week. Soil moisture is still reported to be low across much of the region, leaving some areas in desperate need of rainfall. Temperatures will be more pleasant as this system passes through, keeping stresses down for those drier areas, however.

Europe:  Showers fell over western and eastern areas of the continent over the long weekend, being favorable where they hit. Several impulses will bring showers to northern areas this week, hitting more areas, especially Germany, that has been very dry as of late. Most areas will see rainfall, though Italy may remain completely dry. Conditions are still largely favorable for developing corn and immature wheat.

The player sheet for 6/16 had funds: net buyers of 11,000 contracts of SRW wheat, buyers of 16,000 corn, buyers of 23,500 soybeans, buyers of 12,500 soymeal, and  buyers of 5,500 soyoil.

TENDERS

  • WHEAT PURCHASE: Algeria’s state grains agency OAIC has bought milling wheat in an international tender which closed on Monday with supplies expected to be sourced largely from Russia
  • WHEAT PURCHASE: Saudi Arabia bought 355,000 tonnes of wheat for the shipment period August to December from Saudi-owned overseas farms, data from General Food Security Authority showed on Monday.
  • SOYMEAL TENDER: Iranian state-owned animal feed importer SLAL has delayed the deadline for submission of price offers in an international tender to purchase up to 120,000 metric tons of soymeal to Wednesday.

PENDING TENDERS

  • CORN TENDER: Taiwan’s MFIG purchasing group has issued an international tender to buy up to 65,000 metric tons of animal feed corn which can be sourced from the United States, Brazil, Argentina or South Africa
  • WHEAT TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) is seeking to buy a total of 92,529 tonnes of food-quality wheat from United States, Canada and Australia in a regular tender that will close on Thursday.
  • RICE TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp issued an international tender to purchase an estimated 62,200 metric tons of rice, European traders said. The deadline for submissions of price offers was June 8.

TODAY

China May Cotton Imports -40.6% Y/y, Corn -20.1% Y/y: Details

(Bloomberg) —  China’s exports of rare-earth products fell 6.4% from a year ago in May, according to figures released by the Beijing-based Customs General Administration.

  • Soybean imports +24.3% y/y to 12.02M tons
  • Corn imports -20.1% y/y to 1.66M tons
  • Wheat imports +71.5% y/y to 1.15M tons
  • Rice imports -58% y/y to 0.28M tons

China’s May soybean imports from Brazil jump 40% y/y

China’s soybean imports from Brazil soared 40% in May, compared with a year-ago period, data showed on Tuesday, after big purchases of cheap beans arrived into Chinese ports.

The world’s top buyer of soybeans imported 10.94 million metric tons of the oilseed from Brazil, its largest supplier, versus 7.79 million tons a year earlier, data from the General Administration of Customs showed.

Chinese buyers took advantage of this year’s huge Brazilian soy crop and attractive prices to ramp up buying earlier this year.

After initial delays to the harvest and loading of Brazilian beans, cargoes have surged into Chinese ports, pushing total arrivals last month to 12 million tons, the largest volume ever in a single month.

The large May arrivals helped Brazil catch up on last year’s shipments, with arrivals in the first five months of this year at 20.15 million tons, almost level with 20.47 million tons at this time a year ago.

Imports from the United States reached 923,529 tons, down 47% from the year-ago level.

Still, U.S. shipments for this year so far stand at 19.16 million tons, well above 16.77 million tons last year.

For corn, arrivals from the United States fell to 568,434 tons, down from 1.9 million tons a year ago.

Total Chinese corn imports in May contracted 20% to 1.66 million tons from last year, with Ukraine being the dominant supplier with 865,880 tons.

Last year, China’s corn imports from Ukraine plunged in May to 126,727 tons, after Russia’s invasion cut off shipments and before a special grain corridor was established to restart exports.

Brazil farmers harvest 4.7% of 2023 second corn crop, AgRural says

Brazilian farmers have harvested through last Thursday 4.7% of the area planted for their second corn crop in the center-south region, agribusiness consultancy AgRural said on Monday, up 2.5 percentage points from the previous week.

At the same time last year, 11.4% of the Brazilian corn fields had been reaped, AgRural said in a statement, noting fieldwork remains concentrated in top grain producing state Mato Grosso.

Brazil’s second corn harvest lags, estimated at 4.33% of 2022/2023

Brazilian farmers have harvested 4.33% of their 2022/2023 second corn crop this season, less than the 14.72% harvested at this time last year, according to a survey by Patria Agronegonegocios.

Field work is behind as second corn, which represents about 75% of Brazil’s national corn production in a given year, was planted later than usual. Second corn is sowed after soy is harvested in the same areas.

SOYBEAN/CEPEA: Weather in the USA is still a concern, but world output may be high

Low rainfall in the mid-west of the United States since early June has been concerning the agents in the soybean sector, since it may damage crops development. Soybean sowing is over in the country, and the percentage of crops in good or excellent conditions is decreasing week after week. Rains are forecast for the coming days, which may soften possible negative effects of the weather on crops.

Despite this scenario, estimates from the USDA released this month point to high increases in both the world and the Brazilian supplies of soybean in the 2023/24 and the 2022/23 seasons, respectively. According to the USDA, the world supply may overcome demand, raising the stock/demand ratio from 27.8% to 31.9%, the highest in five seasons.

ESTIMATES – In a report released on June 9th, the USDA estimated the world soybean output in the 2023/24 season at 410.7 million tons, a slight 0.03% higher than that previously forecast and 11% up from that last season. The increases between the 22/23 and the 23/24 seasons were linked to higher harvests in the US, Brazil and Argentina, which remained stable compared to that reported in May.

As for Brazil, Conab has, once again, revised up the estimates for the national 22/23 crop of soybean, to 155.74 million tons, 24% higher than that last season. It is important to highlight that the soybean harvesting is over in Brazil. The area allocated to soybean crops is expected to be larger too, by 6.1% compared to that last season, totaling 44.03 million hectares. Productivity is forecast to be 17% higher in the current season.

Conab estimates the Brazilian exports of soybean to total 95.64 million tons this year, a record and 21.5% above the total shipped in 2021/22. Ending stocks are forecast to total 7.5 million tons on December 31st, a lot higher than that last season (3.13 million tons).

CROPS – By June 10th, 99.9% of the Brazilian soybean crop had been harvested, with activities about to end in the state of Maranhão. In the US, according to the USDA, 96% had been sown by June 11th, with 59% of crops in good/excellent conditions; 32%, in average conditions; and 9%, in bad conditions.

PRICES – Besides the possible high supply, the 2.5%-dollar depreciation against the Real pressed down the quotations for soybean in Brazil in the last days. Between June 7 and 15, the CEPEA/ESALQ Index Paraná decreased a slight 0.3%, to BRL 127.12 (USD 26.46) per 60-kg bag June 15th. The ESALQ/BM&FBovespa Paranaguá (PR) Index dropped 1%, to BRL 134.24/bag (USD 27.94)/bag on June 15th. The On the average of the regions surveyed by Cepea, soybean prices dropped 3.9% in the over-the-counter market (paid to farmers) and 2.5% in the wholesale market (deals between processors).

CORN/CEPEA: Boosted by the scenario abroad, downward trend of prices is interrupted in BR

Corn prices have reacted in Brazil this week, interrupting the downward trend that had been observed since March. The boost came from the recent valuations abroad, which were influenced by concerns about the development of corn crops in the United States.

Since early June, rainfall has been lower than the necessary in Midwestern United States, which may lower crops’ productive potential. So far, official estimates from the USDA continue to point to higher production in the US, however, crops conditions have gotten worse.

In Brazil, estimates have been revised up again by Conab, indicating that the second crop will be a record.

PRICES – The international demand for the Brazilian corn has increased slightly, however, domestic purchasers continue away from the market, waiting for the second crop to arrive. Still, farmers from many regions have limited supply to the spot market, influenced by the recent valuations abroad.

Thus, between June 7-15, on the average of the regions surveyed by Cepea, quotations increased 0.6% in the over-the-counter market (paid to farmers) and 0.1% in the wholesale market (deals between processors). In the same period, the ESALQ/BM&FBovespa Index for corn rose 1.2%, to BRL 54.35 (USD 11.31) per 60-kg bag on June 15. Valuations were constrained by the expectations for a record harvest in Brazil.

PORTS – Corn prices rose 0.4% at the port of Paranaguá between June 7-15, to BRL 61.25/bag on June 15th, influenced by the slightly higher demand for the Brazilian corn.

ESTIMATES – Data released by Conab on June 13th indicated that the corn output in the 22/23 season may total 125.71 million tons, 11% higher than the previous. Until May, the output was estimated at 125.53 million tons.

Once again, this increase was influenced by the larger area and the recovery of productivity during the season – the second crop is now estimated at 96.31 million tons; the first crop, at 27.07 million tons, due to higher productivity, and the third crop, at 2.33 million tons, an increase of 5%.

As for consumption and exports, Conab kept estimates stable, at 79.35 million tons and 48 million tons. Thus, ending stocks are forecast at 8.36 million tons.

CROPS – The recent rains observed in most of the regions that produce second crops have heartened farmers. The harvesting of the second crop has begun in Mato Grosso and Minas Gerais, according to data from Conab released on June 12th. Thus, 1.7% of the national crop had been harvested by late last week. As for the summer crop, 85% have been harvested, with activities still going on in Maranhão, Bahia, Piauí and Rio Grande do Sul.

WHEAT/CEPEA: Brazilian wheat output expected to be lower, but Argentinean production may rise

After setting a record in 2022, the Brazilian wheat output is expected to be slightly lower in 2023. Although the area sown in Brazil is larger than that from 2022, productivity is estimated to decrease. On the other hand, in Argentina, supply is forecast to recover.

In Brazil, according to data from Conab released this month, the output is estimated to total 9.7 million tons, a slight increase compared to that forecast in May, but 7.4% lower than that last season, which as a record.

The area allocated to wheat crops in Brazil is forecast to be 9.7% larger than that last season, totaling 3.38 million hectares. However, productivity estimates were revised down by 0.2% compared to that released in May, being also 15.6% lower than that in 2022, at 2.88 tons/hectare.

Data from the Bolsa de Rosário have released the first estimates for the Argentinean crop, with the output forecast at 16.2 million tons, a lot higher than that from last year. However, if that is confirmed, it will still be the second lowest in eight years.

CROPS – In Brazil, 46.9% of the national wheat crop had been sown by June 10th, according to Conab. In Argentina, according to Bolsa de Cereales, 39.5% had been sown by June 14th.

PRICES – Cepea surveys show that, between June 9-16, the prices paid to wheat farmers dropped 0.55% in Rio Grande do Sul and 0.21% in Paraná, remaining stable in Santa Catarina. On the other hand, in the wholesale market (deals between processors), values rose 0.79% in PR, 0.75% in São Paulo, 0.45% in RS and 0.35% in SC. In the same period, the US dollar decreased 1.19%, closing at BRL 4.818 on June 16.

Europe’s Too-Wet, Too-Dry Weather Hampers Grain and Sugar Crops

  • Warm, sunny conditions depletes soil moisture in north: MARS
  • Yield outlook trimmed for soft-wheat, barley, rapeseed, sugar

Not enough rain in northern Europe, and too much further south, is paring harvest prospects for the region’s staple crops.

Recent warm and dry conditions rapidly depleted soil moisture across the continent’s northern tier, the European Union’s Monitoring Agricultural Resources unit said in a monthly note. By contrast, fields in countries like Italy and Hungary are waterlogged from excess rain.

That’s curbing yield prospects across soft-wheat, barley, sugar beet and corn, the agency said. It comes as drought also flares in the US Midwest, which sent benchmark Chicago grain futures tearing higher last week.

Still, beneficial weather earlier in the spring means overall EU grain yields remain above the five-year average and rain is seen in most areas through June 24, the report said. In areas like Germany, precipitation in the coming weeks will be “indispensable” to maintain the positive outlook.

Ukraine’s Black Sea Crop Exports Fall 33% in Week to June 18

The volume of crops departing Ukrainian ports under the Black Sea Grain Initiative totaled about 438,126 tons in the week to June 18, according to data posted by the Joint Coordination Centre.

  • That compares with about 651,318 tons the prior week
  • TOTAL TONNAGE: More than 32m tons of crops have been shipped since the initiative was established last July
  • NOTE: The grain deal was extended in mid-May for two months

Ukraine starts 2023 grain harvest

Farmers in Ukraine’s southern region of Odesa have started the 2023 grain harvest, threshing the first winter barley, local officials said.

Ukraine is a major global grain grower and exporter, but this year’s out is expected to be reduced because of Russia’s invasion to around 45 million tonnes from 53 million in 2022.

The agriculture ministry said last week Ukraine’s 2023 spring sowing was almost complete at almost 13 million hectares.

The total sown area as of June 16 included 271,100 hectares of spring wheat, 810,000 hectares of barley, 138,500 hectares of peas, 146,200 hectares of oats, 4 million hectares of corn and other commodities.

Low water hampers Rhine river shipping in Germany

Low water levels after dry weather are preventing cargo vessels from sailing fully loaded on the Rhine river in Germany and meaning surcharges are added to the usual freight rates, commodity traders said on Monday.

Low water has hampered shipping on most of the river south of Duisburg and Cologne, including the chokepoint of Kaub, traders said.

The Rhine is an important shipping route for commodities such as grains, minerals, coal and oil products, including heating oil. German companies faced supply bottlenecks and production problems in summer 2022 after a drought and heat-wave led to unusually low water levels on the Rhine.

Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not sailing fully loaded, increasing costs for cargo owners.

Water levels at Kaub WL-KAUB are around 135 cm, down from around 350 cm in May. Last June, water levels fell below 120 cm and depleted to a critically low 32 cm in August 2022.

Deutsche Bank said in a note water levels below 135 cm mean a large container ship might have to reduce its load to around 50%.

In the years 2018-2020, water levels in mid-June were around 220-320 cm, Refinitiv Eikon data showed.

“A look at the current development of the Rhine’s water levels brings back memories of the previous year, when there were massive problems for Rhine navigation during summer,” Deutsche Bank economist Marc Schattenberg said in a note.

Rain forecast in river catchment areas in Germany this week could raise water levels, traders said, although shipping data provider Riverlake said the rain might not be enough to restore water levels to average depths.

Ukragroconsult Sees Russia 2023-24 Wheat Exports at 45m Tons

Russia 2023-24 wheat exports will not exceed 45m tons, while barley exports will not exceed 6.5m tons, analyst Maryna Marynych writes in an emailed note.

  • Finance and logistics complications related to sanctions, export tax, Russian agriculture ministry’s efforts to influence export prices and quotas all limit export levels: Ukragroconsult
  • Sees July 2022-April 2023 wheat exports at a record 35.8m tons; 2022-23 total could be as high as 42.8m tons
  • Lowers 2022-23 barley export estimate to 4.2m tons
  • Russian barley exports to Iran have risen 72% YoY, but Turkey bought Ukrainian barley at a cheaper price, while Saudi Arabia switched to imports from Australia

Russian Wheat Exports Expected to Triple — Market Talk

Exports of Russian wheat in June is expected to triple from this time last year, says SovEcon in a note. The firm projects exports for the month to total anywhere from 2.8 million metric tons to 3.2 million tons. “High wheat stocks in primary agricultural regions are bolstering export activities,” says Andrey Sizov of SovEcon. “As of the start of May, wheat stocks in agricultural organizations were at 12.0 million metric tons, double the multi-year average, according to Rosstat.” Sizov notes that the price floor recently introduced by Russia for wheat exports may curb sales going forward. Most-active wheat futures on the CBOT are up 3% in trading today, while corn is up 2.5% and soybeans are up 2.1%.

AMLO Says Mexico to Set Tariffs on White Corn Imports: Milenio

President Andres Manuel Lopez Obrador announced tariffs on white corn to promote the consumption of domestic white corn, Milenio reported citing remarks from a morning press conference.

  • Mexico won’t allow use of GMO corn as promised since the presidential campaign, AMLO, as the president is known, said: Milenio
  • AMLO says he’ll sign agreement whereby only white corn, and no GMO corn, can be used in tortillas: Milenio
  • Mexico, US discussions on GMO corn issue may lead to panel, but this is a public health matter, AMLO said: Milenio
  • AMLO said there are many interests at play in GMO corn issue, may require a joint study to determine any health impacts: Milenio
  • NOTE, June 9: Canada Joins US Trade Complaint Against Mexico’s GMO Corn Ban

Biofuels to be 10% of additional oil supply in 2022-28: IEA

The International Energy Agency (IEA) has forecast global oil demand to go up by 5.9 million barrels per day (mb/d) by 2028. It has also said biofuels (ethanol and biodiesel) will provide 10% of new liquid fuel supply growth to 2028. “Biofuels production expands nearly 600 thousand barrels per day (kb/d) from 2022 to 2028, led higher by significant growth from emerging economies,” the IEA said in its ‘Oil 2023: Analysis and forecast to 2028’ report.

India, Brazil and Indonesia account for 70% of the increase as each country pursues domestic blending targets. The global energy crisis has heightened energy security concerns and accelerated the deployment of clean energy technologies, the report said.

Ethanol and biodiesel supply will increase by 30% in emerging economies from 2022 to 2028, primarily to support rising domestic demand in response to policies designed to reduce oil imports and greenhouse gas (GHG) emissions while using domestic feedstocks such as sugar, corn and palm oil. Growing demand for liquid transport fuels also buoys biofuel production, it said.

“India is ramping up output to meet its 20% ethanol blending target by 2025, supported by guaranteed pricing and incentives for new ethanol facilities,” the IEA said. In Indonesia, production expands to meet a 35% biodiesel blending goal, up from 30% in 2022 while Brazil is aiming for 15% for 2026.

India, Indonesia and Brazil are all considering additional biofuel policies that provide considerable upside potential to growth.

Further, GHG reduction targets also fuel biofuel demand growth in advanced economies like the United States, Europe and Canada, even as slowing transport fuel demand over the forecast period temper the overall increase.

Renewable diesel and biojet fuel dominate new supply as it can be produced with low GHG intensity from residues and blended with few modifications. In ethanol’s case many jurisdictions do not have compatible infrastructure, such as pumps, to support higher blending levels, the agency said.

The turbulence in global oil markets, which started with the Covid-19 pandemic and was aggravated by the Russian invasion of Ukraine, has accelerated the transition away from oil, it said, adding the growth in world oil demand is set to slow down during the 2022-28 forecast period.

“Investment in clean energy is accelerating at a faster rate than for fossil fuels, helping bring peak oil demand into view,” it said. For every $1 spent on fossil fuels, $1.7 is now spent on clean energy, the agency said in another report. Five years ago this ratio was 1:1. The IEA, in its report ‘World Energy Investment 2023’ released last month, said that the agency estimates investment of around $2.8 trillion in energy in 2023.

“More than $1.7 trillion is going to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements and end-use renewables and electrification,” IEA said.

The remainder, slightly over $1 trillion, is going to unabated fossil fuel supply and power, of which around 15% is to coal and the rest to oil and gas.

Petroleum and natural gas minister Hardeep Singh Puri has said biofuels will play a pivotal role in achieving reduction in import of fossil fuel and ultimately help to achieve the target of net zero emission.

“The energy security of the country will remain vulnerable until alternative fuels to substitute/ supplement fossil fuels are developed based on indigenously sustainable renewable feedstock,” Puri said in April.

India, Brazil and the US are working along with other interested countries to develop Global Biofuel Alliance, a priority area under India’s G20 Presidency.

Cargill Files to Halt Auction of Imcopa Plants, Considers Buying

The Brazilian unit of Cargill Inc. asked a bankruptcy court to halt the auction of two soy crushing plants owned by local firm Imcopa as the US grain trader is interested in buying the assets, the company said Friday in a response to questions from Bloomberg.

  • Auction of Imcopa’s soy plants in Parana, a state in south Brazil, is scheduled for June 27
  • By filing the request in Brazil’s bankruptcy court, Cargill expects to have adequate time and conditions to assess circumstances of the sale and relevant information on the plants to be auctioned
  • Cargill’s interest in Imcopa’s plants was first reported by Reuters
  • NOTE: Back in 2020, Bunge Ltd. signed a contract to buy Imcopa’s plants, but the deal was canceled a year later amid a legal battle involving Imcopa’s creditors

Japan Declares Itself Free of Bird Flu

Japan’s farm ministry declares the country free of avian influenza as of May 13.

Says completed measures to contain outbreak as of April 14 and hasn’t confirmed any new infections

US Beef Production Up 3% This Week, Pork Down: USDA

US federally inspected beef production rises to 516m pounds for the week ending June 17 from 501m in the previous week, according to USDA estimates published on the agency’s website.

  • Cattle slaughter up 2.9% from a week ago to 634m head
  • Pork production down 1.4% from a week ago, hog slaughter falls 1.2%
  • For the year, beef production is 4.8% below last year’s level at this time, and pork is 0.3% above

Monsoon deficiency declines to 33% from 47% in 3 days

After a sluggish progress following late onset over the Kerala coast on June 8 and cyclonic storm ‘Biparjoy’ crossing its path, conditions are becoming favourable for the southwest monsoon to move to parts of south peninsula, Bihar, Odisha, West Bengal, Jharkhand and eastern Uttar Pradesh over the next two to three days, weather forecasters said Monday.

According to India Meteorological Department (IMD), the monsoon deficit has narrowed to 33% on Monday from 47% in June 16, due to heavy rainfall in Gujarat and Rajasthan after the effect of the cyclonic storm ‘Biparjoy’.

The cumulative rainfall across the country, according to India Meteorological Department, (IMD) during June 1-19 has been 33% less than the benchmark long period average (LPA).

In terms of regional variations, monsoon deficiency has been 56% in central India and 61% in south peninsula so far.

Because of widespread rainfall caused by low pressure following the cyclonic storm ‘Biparjoy’ over central part of Rajasthan, the northwest region, however, has received 37% more rainfall than “normal.” Madhavan Rajeevan, former secretary, ministry of earth sciences said models suggest a monsoon revival by June 20 with active conditions along the west coast, over Bay of Bengal and Central India.

Agriculture ministry officials said that with the revival of monsoon rains and rains caused after the cyclonic storm over Gujarat and Rajasthan, the kharif crops sowing activities are likely to pick up pace.

According to agriculture ministry data till June 16, sowing of rice, pulses and oilseeds have declined by 14.6%, 57.2% and 14.4%, respectively, on year. However, areas of cotton and coarse cereals have been been up 6% and 64% on year, respectively.

IMD’s agro-advisory service has urged farmers in Gujarat and Rajasthan to drain out excess water from the cotton, groundnut vegetable field caused by cyclonic storms. It has also urged farmers to postpone sowing of kharif crops till optimum moisture content is achieved on the soil.

Meanwhile, private weather forecaster Skymet predicted heavy rains over western parts of Assam, West Bengal, Sikkim, southeast Rajasthan, and parts of west Madhya Pradesh in the next one day.

The met department has also stated that heat wave conditions over eastern India are likely to abate gradually from Tuesday onwards.

Meanwhile, the IMD is sticking to April 11 forecasts that the precipitation this year will be in the “normal” range, at 96% of the LPA. Skymet had earlier said monsoon precipitation this year could be “below normal” at 94% of the LPA. Rainfall between 96-104% of the LPA is considered “normal”.

Southwest monsoon season (June-September) accounts for 75% of the country’s annual rainfall.

After the onset of monsoon covers the entire country by the end of June, farmers begin sowing of kharif crops such as paddy, coarse cereals, pulses and oilseeds.

Wild Weather in China Poses New Threat to Country’s Grain Crops

  • Temperatures may climb as high as 39C in northern China
  • Weather is becoming more erratic globally, hurting crops

China is bracing for more extreme weather in coming days, bringing further risks to grain production across the nation.

While high temperatures in northern areas could affect corn planting and harm wheat crops, heavy rains are likely to hurt rice in key southern growing regions, according to a report from the National Meteorological Center.

The weather woes in the top importer of wheat, corn and soybeans come as drought threatens US crops, and heat waves melt glaciers and kill people in Asia. More disruption is looming from El Niño later this year. In China, heavy rains have already damaged wheat fields, while sweltering heat has stretched power grids, and the country is preparing for risks from widespread flooding.

Temperatures as high as 39C (102F) are expected in parts of northern China in the next few days, which could easily cause heat stroke among workers in the fields and accelerate loss of soil moisture, affecting summer planting. Farmers in the region usually plant corn after they have harvested wheat.

In parts of the northwestern region of Xinjiang, where some farmers have switched to growing grain rather than cotton under a government food security drive, fields of maturing wheat are now threatened by hot, dry winds.

Rains in many areas of southern China in the next 10 days are expected to be significantly higher than normal. While good for soil moisture, the rains increase flooding risks and can disrupt pollination of early rice, hurting yields.

 

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