Global Ag News for Mar 7.22

 TODAY – EXPORT INSPECTIONS

Wheat prices overnight are up 85 in SRW, up 85 in HRW, up 60 in HRS; Corn is up 19; Soybeans up 30 1/2; Soymeal up $0.96; Soyoil up 1.55.

Markets finished last week with wheat prices up 360 in SRW, up 335 3/4 in HRW, up 213 in HRS; Corn is up 82 3/4; Soybeans up 56 3/4; Soymeal up $2.35; Soyoil up 1.80. For the month to date wheat prices are up 360 in SRW, up 346 1/2 in HRW, up 213 in HRS; Corn is up 82 1/2; Soybeans up 54 1/4; Soymeal up $23.70; Soyoil up 1.83. Year-To-Date nearby futures are up 75% in SRW, up 50% in HRW, up 19% in HRS; Corn is up 31%; Soybeans up 28%; Soymeal up 16%; Soyoil up 36%.

Chinese Ag futures (MAY 22) Soybeans down 24 yuan; Soymeal up 107; Soyoil down 58; Palm oil down 134; Corn up 16 — Malaysian palm oil prices overnight were up 350 ringgit (+5.58%) at 6626.

There were changes in registrations (128 SRW Wheat, 62 HRW WheaT). Registration total: 2,185 SRW Wheat contracts; 0 Oats; 17 Corn; 68 Soybeans; 98 Soyoil; 0 Soymeal; 170 HRW Wheat.

Preliminary changes in futures Open Interest as of March 4 were: SRW Wheat down 4,745 contracts, HRW Wheat down 3,310, Corn down 9,793, Soybeans down 9,341, Soymeal up 996, Soyoil down 6,792.

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

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

Northern Plains corn, soybeans and spring wheat forecast: Isolated showers Friday, mostly north. Isolated to scattered showers Saturday, especially southeast. Mostly dry Sunday-Monday. Isolated showers Tuesday. Temperatures near to above normal Friday, near to below normal Saturday-Tuesday. 6 to 10 day outlook: Scattered showers Wednesday-Thursday. Mostly dry Friday-Sunday. Temperatures below to well below normal Wednesday-Sunday.

Central/Southern Plains wheat and livestock forecast: Scattered showers Friday night-Sunday. Isolated showers early Monday. Mostly dry Tuesday. Temperatures above to well above normal Friday, below normal northwest and above normal southeast Saturday-Sunday, below normal Monday-Tuesday. 6 to 10 day outlook: Mostly dry Wednesday. Isolated to scattered showers Thursday-Friday. Mostly dry Saturday-Sunday. Temperatures below to well below normal Wednesday-Sunday.

The player sheet for 3/4 had funds: net buyers of 15,000 contracts of  SRW wheat, buyers of 4,500 corn, buyers of 5,000 soybeans, buyers of 5,000 soymeal, and  sellers of 5,000 soyoil.

TENDERS

• SOYBEAN SALE: U.S. exporters sold 106,000 tonnes of soybeans for delivery to China, the U.S. Department of Agriculture said.
• SOYBEAN SALE: U.S. exporters sold 108,860 tonnes of soybeans for delivery to Mexico during the 2021/2022 marketing year, the USDA said.
• SOYBEAN SALE: U.S. exporters sold 125,000 tonnes of soybeans for delivery to unknown destinations during the 2021/2022 marketing year, the USDA said.
• WHEAT TENDER: Iraq’s trade ministry has requested funds to cover the importation of two million tonnes of wheat to provide a strategic reserve, trade ministry spokesman Mohamed Hanoun said in remarks carried by state media. Iraq will accept offers from international companies for wheat from Sunday, March 6.
• SOYMEAL TENDER: Leading South Korean animal feed maker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 60,000 tonnes of soymeal

PENDING TENDERS

• BARLEY-SOYMEAL TENDER: Iranian state-owned animal feed importer SLAL issued international tenders to purchase up to 60,000 tonnes of barley and 60,000 tonnes of soymeal
• RICE TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp issued an international tender to purchase an estimated 72,200 tonnes of rice to be sourced from the United States and Vietnam, European traders said. The deadline for registration to participate in the tender was Feb. 25.
• WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy 120,000 tonnes of milling wheat which can be sourced from optional origins
• BARLEY TENDER: Jordan’s state grains buyer issued an international tender to purchase 120,000 tonnes of animal feed barley
• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat, traders said. The deadline for submission of price offers is March 16.

Brazil 2021/22 Soybean Output Est. Cut to 125.1m Tons: Safras

Brazilian producers are now expected to harvest 125.08m tons of soybeans in the 2021/22 crop season, less than the 127.17m tons seen on Feb. 11, consulting firm Safras & Mercados said in an emailed report.

• If materialized, the output will be 9.4% lower than the 138.1m tons produced in 2020/21
• Safras revised its soybean production forecast down to reflect negative effects on average yields in Southern states, mostly in Parana and Rio Grande do Sul, where productivity levels are seen as much as 40% lower compared to prior season
• Brazil’s soybean planted area is estimated at 40.78m hectares in 2021/22, up 4.1% from 2020/21
• Average yield forecast was cut to 3,542 kilograms per hectare from 3,083 kilograms per hectare

China says to ensure key agricultural products supplies including grains – work report – Reuters

China will ensure key agricultural products supplies, including grains, this year, according to a government work report released at the start of the country’s annual meeting of parliament on Saturday.

China will stabilize planting acreage of grains and promote expanding output of soybeans and other oilseeds, the report said.

AMIS Cuts World Soybean Stockpile Estimate to Eight-Year Low

World soybean stockpiles in the 2021-22 season are now seen at 43.2m tons, down from a February estimate for 48.7m tons, FAO-AMIS said in a report.

• That would be the lowest since the 2013-14 season
• Production estimate cut to 354.9m tons, from 368.4m tons, on “prolonged unfavorable weather” in Brazil, Argentina and Paraguay

SOYBEAN/CEPEA: Global demand for soy oil increases; prices set records in BR and abroad

The significant increase in the demand for soy oil worldwide boosted the prices for this by-product to record levels in Brazil and in the United States. Lower exports of sunflower oil from Ukraine (because of the war) and the lack of palm oil in Indonesia increased the demand for soy oil. Besides, oil valuations raise the interest in biodiesel, for which soy oil is the major raw material.

To make matters worse and help to push up prices, the supply of soy oil in Argentina is still uncertain, due to the lower soybean harvest in the current season – it is worth to mention that Argentina is the major exporting country of soybean by-products in the world. Thus, importers are searching for the product in Brazil and in the USA.

At CME Group, the first contract for soy oil rose by a staggering 13.9% between Feb. 24 and March 3, to USD 0.7830/pound (USD 1,726.20/ton) on Thursday, 3. On Wednesday, 2, the first contract hit USD 0.7954/pound (USD 1,753.54/ton), the highest in all times.

The premiums for soy oil increased in Brazil too, underpinning domestic prices, which set nominal records. In São Paulo city, soy oil prices (with 12% ICMS) rose by 5.1% between Feb. 24 and March 3, to BRL 9,124.17/ton on Thursday, 3 – the highest in the series of Cepea, which began in July/98.

SOYBEAN – High demand for by-products, the crop failure in South America and the disinterest of sellers have boosted export premiums and domestic prices for soybean in Brazil.

Besides, Brazilian soybean farmers are aware of a possible higher demand for soybean worldwide and, thus, are not interested in selling large batches in the short term. These farmers are based on higher demand from China and lower stocks at Brazilian processors.

In the Brazilian spot market, the ESALQ/BM&FBovespa Index Paranaguá rose by 0.8% between Feb. 24 – Mar. 3, to BRL 202.90 (USD 40.39) per 60-kilo bag on Thursday (3). On Wednesday, 2, this Index hit BRL 203.20/bag, the highest nominal level in the series of Cepea, which began in March 2006.

The CEPEA/ESALQ Index Paraná for soybean increased by 1.2%, to BRL 199.85 (USD 39.78)/60-kilo bag on Mar. 3, also a nominal record in the series of Cepea, which began in July/97. On the average of the regions surveyed by Cepea, prices rose by 1.2% in both the over-the-counter market (paid to farmers) and in the wholesale market (deals between processors).

Domestic prices have also been influenced by international valuations, which were linked to the dollar depreciation against other currencies – compared to the Real, the America currency dropped by 1.8% between Feb. 24 and Mar. 3, to BRL 5.024 on Thursday.

CROP – Soybean harvesting has stepped up in southeastern and central-western Brazil. According to agents consulted by Cepea, productivity is higher than expected in these regions. Recent rainfall in Rio Grande do Sul and in Argentina have favored the crops that were sown later.

According to Conab, 42.1% of the Brazilian soybean crop had been harvested by Feb. 26, up from the 23.4% harvested in the same period last year. Among the Brazilian states, 80.5% of the soybean crop has been harvested in Mato Grosso, 60% in Tocantins, 47% in Mato Grosso do Sul, 55% in Goiás, 26% in Minas Gerais, 29% in Paraná, 31% in São Paulo, 17% in Santa Catarina, 19% in Maranhão, 13% in Piauí, 7% in Bahia and 1% in Rio Grande do Sul.

CORN/CEPEA: Demand increases, and prices rise in BR and in the USA

Corn prices have resumed rising in Brazil and abroad this week. In the domestic market, after the carnival recess, purchasers returned to the spot aiming to replenish inventories, however, sellers were absent, currently focused on the harvesting of the summer crop and waiting for new valuations to sell the cereal.

In the United States, valuations are linked to the Russia-Ukraine war – which are two of the major corn producers and exporters in the world. With the halt in the exports from Ukraine, the uncertainties about the world supply have increased. Besides, the current scenario may hamper sowing of the new crop in Ukraine, forecast to begin in April.

Between Feb. 24 – Mar.3, the ESALQ/BM&FBovespa Index (Campinas, SP) rose by a slight 0.9%, to BRL 97.72 (USD 19.45) per 60-kilo bag on Thursday, 3. On the average of the regions surveyed by Cepea, the prices paid to corn farmers (over-the-counter market) increased by 0.5%; in the wholesale market (deals between processors), values rose by 0.4%.

At CME Group, the futures surpassed USD 7/bushel on Tuesday, 1st, level that had not been observed since May/21. In the Brazilian future market, values are on the rise too, despite the harvesting in the South.

PORTS – Demand has resumed increasing at Brazilian ports, with exporters supplying higher volumes and asking higher prices for deliveries in March and in April. This scenario is linked to concerns related to the halt at the ports in the Black Sea. Recent data from the USDA show that Russia and Ukraine altogether account for 20% of the world exports of corn and 3% of the world consumption in the current season.

Amid high demand, prices rose by a staggering 8.6% at the port of Paranaguá (PR) in the last seven days, to BRL 100.33/bag on March 3. Some deals of higher prices were reported in the spot market and for April. However, for the second crop, liquidity and prices have been lower.

EXPORTS – In February, Brazil exported 717.77 million tons of corn, according to Secex, 8% less than that in Feb/21, due to lower demand last month. Imports decreased by a steep 84%, totaling 47 thousand tons.

CROPS – Good weather conditions are favoring crop activities in Brazil. In Paraná, 38% of the first crop had been harvested by Feb. 26, according to Conab. In São Paulo and in Santa Catarina, 25% and 68% have been harvested.

In Rio Grande do Sul, the harvesting has advanced, reaching 60% of the state area, according to Emater/RS. Productivity, which was initially estimated at 6.11 million tons, is expected to be 53% lower. The national average of the harvesting is at 23.3%, according to Conab.

On the other hand, sowing of the second crop has been faster. According to Imea, by Feb. 25, 82.74% of crops had been sown in Mato Grosso. Still according to Imea, 48.5% of the crop has been sold already.

In Paraná, 36% of the second crop has been sown, according to Conab. And according to Seab/Deral, 3% has been sold.

In Mato Grosso do Sul, the dry weather is favoring sowing, but farmers need to be aware of the ideal period to conclude the activity, on March 10th in this state. According to Famasul, by Feb. 25, 35% of crops had been sown.

Cooking Oil Prices Will Stay High on Global Supply Crunch: Fry

Prices of edible oils will remain elevated in the coming months and could rise even more as global supplies are squeezed due to the Russia-Ukraine situation, according to James Fry, chairman of LMC International.

• Malaysian palm oil output may only rise around 3%-4% y/y this year
  • Inventories in the No. 2 grower may continue to fall as long as Indonesia restricts its exports
• Indonesian production may see similar percentage increase as Malaysia; output in the top grower could fall short of estimates
• The increase in palm oil production will not be enough to offset the gap in global edible oil market caused by sunflower oil
• Rising crude prices are adding to a “perfect storm” that is boosting vegetable oils; high prices could ration consumer demand

China sells 526,254 T of wheat in state reserve auction -trade centre

China sold 526,254 tonnes of wheat, or 100% of its total offer, in an auction of state reserves, at an average selling price of 3,054 yuan ($483.32) per tonne, the National Grain Trade Centre said on Monday.

Ukraine suspends exports of some agriculture goods – Interfax

Ukraine’s government has suspended exports of several agriculture commodities amid the Russian invasion, Interfax Ukraine news agency said on Sunday, quoting a government decision. The government suspended exports of rye, oats, millet, buckwheat, salt, sugar, meat and livestock.

Ukrainian Railways ready boost grain exports by train

Ukraine’s state-run railway operator is ready to organize agricultural exports by rail as a matter of urgency, it said on Sunday, after closure of the country’s Black Sea ports because of the military invasion by Russia.

“This situation causes problems not only for Ukraine. The share of Ukrainian grain on the world market is 11%, the share of sunflower oil is 55%,” Ukrainian Railways said on social media.

“To prevent the global food crisis and save Ukrainian exports, Ukrainian Railways is ready to organise agricultural products delivery by rail urgently.”

Ukrainian Railways said that it might deliver grain to borders with Romania, Hungary, Slovakia and Poland, from where the grain can be delivered to ports and logistics hubs of European countries.

The rail operator can deliver 150 grain carriages per day to Romania, 45 to Poland, 17 to Hungary and 60 to Slovakia, with up to 70 tonnes of grain loaded on each carriage, it added.

The agriculture ministry said Ukraine had exported 43 million tonnes of various grains in the 2021/22 season as of Feb. 23.

Ukraine increased its grain production by 32% in 2021 to 85.7 million tonnes. (Full Story)

The APK-Inform agriculture consultancy on Saturday said Ukraine’s 2022 spring grain sowing could be limited by the Russian invasion and potential shortages of fuel and seeds.

Ukraine usually starts spring sowing in late February or March. The country is a traditional grower of winter wheat but also plants a significant area with corn, which sows in spring.

Ukraine introduces export licences for key agricultural commodities

Ukraine has introduced export licences for agriculture commodities wheat, corn and sunflower oil, Interfax Ukraine news agency quoted a government resolution as saying on Sunday.

The document said that traders would also need licences to export poultry and eggs, the agency said.

India’s wheat exports pick up amid Russia-Ukraine war, says Food Secretary Sudhanshu Pandey

Wheat exports from India, the world’s second-biggest producer of the grain, have picked up after global prices surged due to Russia’s war against Ukraine, and total shipments from the country have already touched a record of 6.6 million tonne this fiscal so far, Food Secretary Sudhanshu Pandey said on Saturday.

It is an “opportunity” for Indian exporters as the new wheat crop will be available early from March 15 onwards when compared to other global wheat producers, he said.

Russia and Ukraine together account for almost a quarter of the global wheat supply. Their wheat crop will mature in August and September this year. As a result, global wheat prices have already gone up and are ruling in the range of Rs 24,000-25,000 per tonne, he added.

“Indian wheat exports, as a result, have picked up. By the end of February, we have already exported 6.6 million tonnes of wheat,” Pandey told reporters in a virtual press conference.

So far, wheat exports have crossed the historical high of 6.5 million tonnes achieved earlier in 2012-13 fiscal, he said.

“Still one month is left, you can expect roughly about 7 million tonne plus exports this year,” he said, adding that this is good news for Indian farmers and exports.

India’s wheat production is estimated to touch a new record of 111.32 million tonnes in the 2021-22 crop year (July-June) as against 109.59 million tonnes in the previous year, as per the Agriculture Ministry’s second advance estimate.

India’s Palm Oil Imports to Hit 12-Month Low on Sky-High Prices

• Demand could slip further as buyers are price sensitive: Patel
• Palm oil rose to record as war in Ukraine deepens supply fears

India’s palm oil imports probably sank to the lowest level in 12 months as record high prices crimped demand from the world’s biggest buyer, according to veteran trader G.G. Patel.

Imports likely slipped to 444,000 tons in February, said Patel, managing partner of GGN Research. That’s down from 553,084 tons a month earlier but is higher than the 394,495 tons in February last year.

March purchases are estimated to be between 450,000 and 500,000 tons, said Patel, who has been trading vegetable oils for half a century.

India is especially vulnerable to soaring vegetable oil prices as it relies on imports for 60% of its needs. Prices have been rallying over the past year due to a supply crunch, with palm, soybean oil and canola repeatedly hitting new highs. Russia’s invasion of Ukraine dealt a fresh blow as the conflict locked out exports from the two nations that ship about 80% of sunflower oil cargoes.

“Palm oil imports are falling due to high prices,” Patel said by phone. “Domestic consumption will continue to decline as Indian consumers are price sensitive.”

In another sign of high prices hurting demand, Indian buyers recently cancelled about 100,000 tons of planned palm oil purchases, according to Sandeep Bajoria, chief executive officer of Sunvin Group. Instead, they will rely on existing stockpiles and an incoming domestic rapeseed crop to meet demand.

Other forecasts from Patel:

• India’s soybean oil imports probably fell to 376,000 tons in February from 391,158 tons a month earlier
  • Imports may slump further in March to 250,000 tons
• Sunflower oil purchases are expected to have slumped to 134,000 tons in February from 307,684 tons the previous month
  • Imports could extend declines in March to 80,000 to 100,000 tons

Hungary to Ban Grain Exports Effective Immediately: RTL

Hungary is banning grain exports as prices climb due to Russia’s invasion of Ukraine, Agriculture Minister Istvan Nagy told RTL television on Friday.

Nagy said a government decree would be published Friday

Surging Wheat Prices to Spur Canada Farmers to Sow More Acres

High prices will affect plans for seeding, grower group says

Swaths of Western Canada remain in extreme drought conditionsBy Jen Skerritt

(Bloomberg) — The historic surge in wheat prices is expected to spur Canadian farmers to sow more acres.

Acres of spring wheat in Canada, one of the world’s top exporters, could rise 2% to 3% in 2022 as soaring prices encourage growers to shift acres from oats, pulses and durum, said Neil Townsend, chief market analyst at FarmLink in Winnipeg, Manitoba.

Russia’s invasion of Ukraine is hindering shipments from one of the world’s vital breadbaskets, leaving grain importers scouring for supplies elsewhere.

“The spring wheat market is on a tear,” said Stephen Vandervalk, vice president of Alberta for the Western Canadian Wheat Growers. “There’s no doubt that this price increase that’s happening now will affect seeding.”

The potential boost in wheat acreage comes amid lingering concerns about dry conditions in Canada. Drought zapped as much of 40% of Western Canada’s grain output last year and swaths of Alberta and Saskatchewan remain under extreme drought conditions, according to the Canadian Drought Monitor.

Stockpiles are insufficient to support additional wheat exports from Canada until growers harvest a new crop. While parts of major growing areas remain dry, spring wheat is able to handle drought better than other crops, Vandervalk said.

Hungary to Ban Grain Exports Effective Immediately: RTL

Hungary is banning grain exports as prices climb due to Russia’s invasion of Ukraine, Agriculture Minister Istvan Nagy told RTL television on Friday.

Nagy said a government decree would be published Friday

Deadly Hog Disease in China Could Add to Food Price Worries

The USDA says a recurrence of deadly African swine fever was detected in China’s Xinjiang Uygur Autonomous Region. While just 150 animals were “susceptible,” with 16 sick and 16 dead, it’s worth tracking as food prices soar globally.

Earlier, a UN index showed food prices jumped to a record in February. The measure was already near a 2011 peak before Russia invaded Ukraine, with bad crop weather, an energy crunch and expensive fertilizers adding to prices. Wheat also had its biggest weekly surge ever. An outbreak of ASF in 2018-2019 had decimated the Chinese herd, sending local hog prices to a record.

Urea, Phosphates Soar as Conflict Escalates

Concerns about tightening global fertilizer supplies pushed prices higher during the second week of fighting in Ukraine. Ammonia prices firmed in Europe as natural gas prices spiked. New Orleans (NOLA) urea jumped to $600-$740 a short ton (st) vs. $532-$705 the week before, with Corn Belt urea up $120-$130/st from pre-invasion levels. Urea prices in Egypt ramped up as well, as port closures and sanctions choked off supply from Russia and Ukraine. Phosphate prices also soared at NOLA and in the Midwest, while mono-ammonium phosphate (MAP) prices moved $50/st higher in the Western U.S. and an expected $130 a metric ton (mt) in Brazil when the next deals are concluded. Potash prices climbed as well, with NOLA barges firming to $650-$705/st vs. the prior week’s $645-$665, and Corn Belt warehouses jumping $20-$30/st.

Argentina Fertilizer Group Fears for Supply for Next Wheat Crop

Ciafa group is worried about fertilizer supplies for the wheat and barley crops that are close to getting planted amid Russia’s invasion of Ukraine, fertilizer and agrochemical group said in a statement.

• Argentina’s winter crops, chiefly wheat, are “highly dependent” on fertilizer, requiring ~1.7m metric tons a year, or nearly 30% of Argentina’s overall fertilizer demand: statement
• NOTE: Argentina used a record 5.6m tons of fertilizer in 2021, with 4.5m tons imported, mainly nitrogen- and phosphate-based products, according to the Rosario Board of Trade
  • Argentina’s 2022-23 wheat plants would yield 21% less than in the previous season in a scenario of “moderate” problems with imports, and 26% less in a “critical” scenario, Rosario analysts wrote

Xi Says China Can’t Rely on World Markets for Food Security

China can’t rely on international markets to ensure food security, President Xi Jinping told a political meeting, the state radio broadcaster reported on Sunday.

China should focus on its domestic food markets, while making sure it has an appropriate level of import capacity, Xi said during a meeting attended by members of the Chinese People’s Political Consultative Conference.

Xi also stressed farmland protection and technology-led development of the seed industry to help solve food security issues.

Policy makers at the National People’s Congress, which runs concurrently with the CPPCC, have also stressed food security as a key issue for the nation this year, particularly after some crop prices rocketed in the wake of Russia’s invasion of Ukraine.

Indonesia Sticks With Biodiesel Policy Even as Palm Oil Soars

• Government is closely monitoring palm oil and petroleum prices
• B40 road test may be delayed to April as plan under discussion

Indonesia, the world’s biggest palm oil producer and exporter, will push ahead with its ambitious biodiesel program even as prices of the tropical oil have soared, which could increase the costs of producing biofuel.

The B30 program, which stipulates that fossil fuels must be blended with 30% palm oil, is still running as planned, said Dadan Kusdiana, director general of new and renewable energy at the Ministry of Energy and Mineral Resources.

The mandate is aimed at soaking up bulging supplies in the top grower. But palm’s premium over gasoil has ballooned to record levels, most recently driven by Russia’s invasion of Ukraine that has further tightened global cooking oil supplies. This presents a challenge to the funding of B30 incentives.

“Currently we haven’t discussed or evaluated the B30 program and it is still running as planned,” Kusdiana said. The government is monitoring crude palm oil and petroleum prices closely and will prepare options to anticipate any development, he said, without elaborating on those plans.

Indonesia’s efforts to increase the palm content in biodiesel to 40% by 2021 were put on hold due to cheaper fuel costs and record high palm prices. Raising the blending rate would require the government to provide a larger incentive through the money it collects from palm oil export levies.

Road test for vehicles powered by 40% palm-biodiesel may be delayed to April, Kusdiana said, adding that the discussions on B40 are ongoing.

“Biodiesel plays a big part in reducing carbon emissions,” he said.

2021-22 Grain Trade Seen Rising Before Ukraine War: FAO

World grains trade in the 2021-22 season is seen at 484m tons, up 2.7m tons from a February estimate, the UN’s Food and Agriculture Organization said Friday in a report.

• “This forecast does not yet assume potential impacts of the conflict in Ukraine on trade flows from Ukraine and the Russian Federation”
• For remainder of season, Ukraine was expected to export ~6m tons of wheat and ~16m tons of corn
• Russia was seen exporting ~8m tons of wheat and ~2.5m tons of corn
• FAO closely monitoring the developments, will assess trade impacts in due course
• Global grain stockpiles seen at 836m tons, a slightly increase y/y

OUTLOOK FOR 2022 CROPS:

• Global wheat production in 2022 seen at 790m tons, fourth straight increase
• Most of the growth stems from North America
• Russian output seen rising to 82m tons due to better weather, while lower Ukraine plantings curb output y/y
• “This preliminary forecast does not consider the impacts of the conflict”

U.S. Beef Production Up 1.5% This Week, Pork Down