Global Ag News for May 25.22

HEADLINES TODAY

Wheat prices overnight are down 28 1/2 in SRW, down 30 3/4 in HRW, down 27 3/4 in HRS; Corn is down 9; Soybeans down 6 1/4; Soymeal down $0.29; Soyoil down 0.34.

For the week so far wheat prices are down 42 1/2 in SRW, down 45 3/4 in HRW, down 29 1/2 in HRS; Corn is down 16; Soybeans down 18 1/2; Soymeal down $0.57; Soyoil down 1.15. For the month to date wheat prices are up 70 1/2 in SRW, up 101 1/4 in HRW, up 83 1/2 in HRS; Corn is down 50 3/4; Soybeans up 2; Soymeal down $8.10; Soyoil down 4.40.

Year-To-Date nearby futures are up 46% in SRW, up 51% in HRW, up 27% in HRS; Corn is up 29%; Soybeans up 27%; Soymeal up 3%; Soyoil up 42%.

Chinese Ag futures (SEP 22) Soybeans up 17 yuan; Soymeal down 16; Soyoil up 94; Palm oil up 110; Corn down 27 — Malaysian palm oil prices overnight were down 100 ringgit (-1.54%) at 6382.

There were no changes in registrations. Registration total: 1,010 SRW Wheat contracts; 23 Oats; 0 Corn; 0 Soybeans; 98 Soyoil; 0 Soymeal; 139 HRW Wheat.

Preliminary changes in futures Open Interest as of May 24 were: SRW Wheat down 3,317 contracts, HRW Wheat up 1,084, Corn down 264, Soybeans up 3,214, Soymeal down 724, Soyoil down 2,074.

Northern Plains Forecast: Mostly dry through Thursday. Isolated to scattered showers Friday-Saturday. Temperatures near to below normal Wednesday, near to above normal Thursday-Saturday. Outlook: Isolated to scattered showers Sunday-Wednesday. Mostly dry Thursday. Temperatures near to below normal west and above normal east Sunday, near to below normal Monday-Thursday.

Central/Southern Plains Forecast: Scattered showers Wednesday. Mostly dry Thursday-Friday. Isolated showers north Saturday. Temperatures below to well below normal Wednesday, near to below normal Thursday, near to above normal Friday-Saturday. Outlook: Isolated showers Sunday-Wednesday, mostly north. Scattered showers Thursday. Temperatures near to above normal Sunday-Monday, near to below normal north and above normal south Tuesday, near to below normal Wednesday-Thursday.

Western Midwest Forecast: Scattered showers through Thursday. Mostly dry Friday. Isolated showers north Saturday. Temperatures below normal through Thursday, near to above normal Friday-Saturday.

Eastern Midwest Forecast: Scattered showers through Friday. Mostly dry Saturday. Temperatures near to above normal Wednesday-Saturday. Outlook: Isolated to scattered showers Sunday-Thursday. Temperatures above normal Sunday-Tuesday, below normal west and above normal east Wednesday-Thursday.

Canadian Prairies Forecast:  Isolated showers Wednesday. Temperatures near to below normal Wednesday. Isolated showers Thursday. Scattered showers Friday. Temperatures near to below normal Thursday-Friday. Outlook: Scattered showers Saturday-Sunday. Mostly dry Monday-Wednesday. Temperatures near to below normal Saturday, below to well below normal Sunday-Tuesday, near to above normal Wednesday.

Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana: Scattered showers Wednesday-Friday. Temperatures near to above normal through Friday. Mato Grosso, MGDS and southern Goias: Mostly dry through Friday. Temperatures through Friday

Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires: Mostly dry Thursday-Friday. Temperatures near to below normal Wednesday, below normal Thursday-Friday. La Pampa, Southern Buenos Aires: Isolated showers Wednesday. Mostly dry Thursday-Friday. Temperatures below to well below normal Wednesday-Friday.

The player sheet for 5/24 had funds: net sellers of 20,000 contracts of  SRW wheat, sellers of 15,000 corn, sellers of 1,500 soybeans, buyers of 3,000 soymeal, and  sellers of 1,000 soyoil.

TENDERS

• NO PURCHASE IN WHEAT TENDER: Jordan’s state grain buyer is believed to have made no purchase in an international tender to buy 120,000 tonnes of milling wheat, traders said.

PENDING TENDERS

• RICE TENDER: Egypt’s state grains buyer the General Authority for Supply Commodities (GASC) is seeking at least 25,000 tonnes of white rice in a tender-practice on the account of the Holding Company for Food Industries. Offers were to be submitted by May 19.
• WHEAT TENDER: A government agency in Pakistan issued an international tender to purchase and import 500,000 tonnes of wheat
• CORN TENDER: Turkey’s state grain board TMO issued an international tender to purchase and import a total of 175,000 tonnes of animal feed corn
• BARLEY TENDER: Jordan’s state grains buyer issued a new 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

Russia May Allow Corridor for Ukraine Ships With Food: IFX

Russia is ready for dialogue to resolve the situation with the blocked grain ships in Ukraine, Russian Deputy Foreign Minister Andrey Rudenko says, according to Interfax.

• Ukraine must demine all ports to arrange corridor
• Possible prisoner swap with Ukraine will be discussed after the surrendered prisoners have been convicted
• Russia considers Moldova’s ex-president Igor Dodon detention as internal Moldovan matter; Russia will monitor Dodon’s rights are respected during trial

Brazil, China Sign Deal That Paves Way to Boost Corn Trade

Brazil and China signed an agreement on sanitary guidelines for corn exports that will guarantee access of Brazilian grain, a move that could threaten the US’s dominance in the Chinese corn market.

After years of talks, the deal was announced late Monday by the vice presidents of Brazil and China after a meeting in Brasilia, according to a statement on Brazil’s foreign ministry website.

While exporters still need to be qualified by China to start shipping, the expectation is that Brazil will be able to export corn to to the Asian nation during the shipping season starting in coming months, Frederico Favacho, a lawyer representing Brazil’s grain exporter group Anec, said by telephone.

With the exception of China, many top global corn buyers have been favoring South American supplies at the expense of U.S. corn. Brazilian corn is about $25 per ton cheaper than US prices, according to Commodity3 data.

Brazilian farmers are starting to reap a record winter-corn crop, which will lead the nation’s total production to 114.6 million tons this season, according to the state-owned agency Conab. Shipments are expected to rise 83% this year to 38 million tons. Last year, corn production in the South American nation was hurt by adverse weather, curbing exports.

China is already the main buyer of Brazil’s soybeans, accounting for about 80% of the nation’s exports.

Brazil’s May soy exports seen reaching up to 11.278 mln T – Anec

• BRAZIL SOY EXPORTS SEEN REACHING UP TO 11.278 MILLION TNS IN MAY VERSUS 11.483 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
• BRAZIL CORN EXPORTS SEEN REACHING 1.243 MILLION TNS IN MAY VERSUS 1.264 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
• BRAZIL SOYMEAL EXPORTS SEEN REACHING 1.903 MILLION TNS IN MAY VERSUS 2.009 MILLION TNS FORECAST IN PREVIOUS WEEK – ANEC
• BRAZIL WHEAT EXPORTS SEEN REACHING 109,099 TNS IN MAY VERSUS 104,720 TNS FORECAST IN PREVIOUS WEEK – ANEC

Ukraine exports 28,000 T grain by trucks so far in May – APK-Inform

Ukraine exported around 28,000 tonnes of grain by truck from May 1 to 22, APK-Inform agriculture consultancy said on Tuesday, quoting official data.

In peacetime, Ukraine, a major global grain grower and exporter, ships abroad up to 6 million tonnes a month of grain. Its exports fell sharply after Black Sea ports were blocked due to the Russian invasion that began on Feb. 24.

APK-Inform said the exported volume included 26,300 tonnes of corn, 1,200 tonnes of wheat and some tonnage of other grains.

Most of the grain was exported via border crossings with Poland.

APK-Inform has said Ukraine is likely to export 18.8 million tonnes of wheat, 21.2 million tonnes of corn and 5.7 million tonnes of barley in the 2021/22 July-June season. Most of those volumes had already been exported before the Russian invasion.

India Allows Duty-Free Soy, Sunflower Oil Import for 2 Years

India allows duty-free imports of 2m tons each of crude soybean and sunflower oils per year for two years, according to a notification by the finance ministry.

• Imports under the quota will not attract any customs duty or agriculture infrastructure and development cess
• The rule will be effective from May 25
  • NOTE: Duty-free imports applicable for 2022-23 and 2023-24 fiscal years
• The Directorate General of Foreign Trade to invite applications for allocation of tariff rate quotas for 2022-23 fiscal year from May 27, according to a notification by the commerce ministry
  • Applications for 2023-24 will be invited later
• NOTE: Currently there is no base import tax on crude soybean and sunflower oils; the agriculture cess of 5% at present will be scrapped

Malaysia Rules Out Cooking Oil Export Curbs, Minister Says

• Domestic supplies of palm oil are sufficient: Minister Zuraida
• Palm oil output seen jumping to 23-25 million tons this year

Malaysia, the world’s second-biggest palm oil producer, has ruled out curtailing cooking oil exports as it has enough supplies to meet local demand and will instead focus on targeting subsidies to ensure it benefits the most needy consumers.

“So far, we have no worries because we definitely have no shortages at all,” Plantation Industries and Commodities Minister Zuraida Kamaruddin said in an interview Tuesday. “Most of the time we export more than half of what we produce, and we still have an excess to export,” she said from her office in the administrative capital Putrajaya.

The nation aims to fill the gap in the edible oil market caused by the Ukraine war, as well Indonesia’s export curbs on palm oil, Zuraida said. She forecasts Malaysia’s palm oil production may rebound to 23 million to 25 million tons in 2022, versus last year’s 18.1 million tons, as pandemic-driven labor shortages ease and foreign workers are allowed back in estates, while smallholders boost productivity to capitalize on high prices.

The labor situation in local plantations will likely return to pre-pandemic levels by June as issues with foreign worker intake are being ironed out, Zuraida said, setting palm oil yields on track to climb in the second half of the year.

“All the teething problems in terms of the worker application and processes” have been resolved, she said. “Everything is in place and now it’s about workers coming in.”

Indonesia Issues Rule on Domestic Bulk Cooking Oil Supply

Indonesia trade ministry issued a regulation on bulk cooking oil to guarantee sufficient local supply at affordable prices for consumers.

• Producers of crude palm oil, RBD palm oil, RBD palm olein and used cooking oil must register and submit production estimates, monthly supply plans and contracts with buyers, distributors or retailers using govt’s online system called SIMIRAH
  • Exporters that aren’t registered can’t get shipment permit
• Companies must distribute bulk cooking oil to govt-appointed regions and report it to the system
  • Govt to validate data and calculate export permit volume based on the data
• Volume for domestic market obligation will be set according to companies’ installed capacity and demand for cooking oil
• Govt to set domestic price obligation that will consider ceiling retail price, production cost, distribution cost and margins

Indonesia to audit palm oil companies, ask for onshore HQ -official

Indonesia will audit all palm oil companies operating in the country and require them to move their headquarters onshore amid efforts to improve governance of the sector, senior cabinet minister Luhut Pandjaitan told local media.

The industry has faced heightened scrutiny and a series of flip-flopping regulations in recent months as the government struggles to control supply and prices of cooking oil, which is made using palm oil.

Luhut’s spokesperson, Jodi Mahardi, said on Wednesday the government will audit companies’ land size, partnership with nearby smallholder farmers, and tax reports, among others.

The government will also get palm oil companies to set up headquarters in Indonesia, Jodi said, without elaborating.

Several Indonesian palm oil companies are listed or headquartered in neighboring Singapore while some Malaysian companies operate plantations in Indonesia through local subsidiaries.

Luhut said the audit could be launched as early as next month.

“The plan is to launch this after supply scarcity has been taken care of and prices return to normal,” Jodi said, referring to cooking oil prices that have remained stubbornly high despite a controversial ban on exports of palm oil that was imposed on April 28 and lifted this week.

Trade Minister Muhammad Lutfi in a parliament hearing on March 18 blamed a “palm oil mafia” for exploiting high cooking oil prices. Meanwhile, lawmakers have called for improvement in palm oil sector governance.

Indonesia’s Attorney General has launched a corruption investigation in relation to palm oil export permits and has named a senior Trade Ministry official and three company executives as suspects.

Weather in May favours grain crops in Ukraine, say forecasters

Weather conditions in May were mostly favourable for Ukrainian spring and winter crops, weather forecasters said on Tuesday.

Ukraine has almost completed 2022 spring sowing but the area is up to 30% smaller than in 2021 because of hostilities in the country’s southern and eastern regions after Russia’s invasion.

“Due to the moderate, cool temperature, despite the deficit of May precipitation, moisture consumption from the soil was moderate,” the state weather forecasting centre said in a report, adding that reserves of productive moisture in the soil under winter crops were sufficient.

Forecasters said that only in southern Odesa and Kherson regions and in some areas of the central regions, the water content deteriorated to unsatisfactory levels.

Analyst APK-Inform on Tuesday said it had increased its forecast for Ukraine’s 2022/23 grain crop to 48.3 million tonnes from 41.4 million tonnes a month earlier.

EU 2021/22 soybean imports at 12.83 mln T by May 22, rapeseed 4.77 mln T

European Union soybean imports in the 2021/22 season that started in July had reached 12.83 million tonnes by May 22, compared with 13.52 million tonnes by the same week in 2020/21, data published by the European Commission on Tuesday showed.

EU rapeseed imports so far in 2021/22 had reached 4.77 million tonnes, compared with 5.91 million tonnes a year earlier.

Soymeal imports so far in 2021/22 were at 14.47 million tonnes against 15.44 million a year ago, while palm oil imports stood at 4.35 million tonnes versus 4.77 million.

EU sunflower oil imports, most of which usually come from Ukraine, were at 1.73 million tonnes, against 1.56 million a year ago, the data showed.

EU 2021/22 soft wheat exports at 24.13 mln T by May 22

Soft wheat exports from the European Union in the 2021/22 season that started in July had reached 24.13 million tonnes by May 15, according to data published on Tuesday by the European Commission.

That compared with 24.23 million tonnes by the same week in 2020/21, the data showed.

EU 2021/22 barley exports had reached 6.75 million tonnes, against 7.07 million a year ago, while EU maize imports were at 14.66 million tonnes, against 13.64 million.

China blocks four Brazil beef plants -agriculture ministry

China has temporarily suspended beef imports from four Brazilian slaughterhouses, two operated by JBS SA JBSS3.SA and two by rival Marfrig MRFG3.SA, according to a statement sent to Reuters confirming the move.

The suspension was announced by the China’s General Administration of Customs and is effective immediately. The Chinese government did not detail the reasons for the beef plants it banned.

“The Ministry of Agriculture, Livestock and Supply confirms that it received the notification on Tuesday by the Chinese authorities about the suspensions.”

According to an industry source speaking on condition of anonymity, one of the banned plants is located in the municipality of Promissao, Sao Paulo state. It’s prohibited from exporting to China for four weeks.

Marfrig’s Varzea Grande plant, in Mato Grosso, is suspended for a week, according to the same source.

The source also said JBS had two units suspended, one in Senador Canedo, Goias state, and another in Lins, Sao Paulo state, for a week.

Marfrig declined to comment on the matter. JBS did not immediately respond to a request for comment.

Beijing’s decision comes hours after authorities from Brazil and China met and agreed on advancing the bilateral trade agenda, in talks that included the signature of a protocol to export Brazilian corn to China. (

Malaysia’s May 1-25 Palm Oil Exports 1,105,307 Tons: AmSpec

Shipments rose 22.5% m/m from 901,978 tons exported during April 1-25, according to AmSpec Agri on Wednesday.

Manitoba Crop-Planting Progress Continues to Lag Amid Rain

About 10% of crops have been seeded, trailing the five-year average of 77%, the province’s agriculture ministry says in a report.

• Heavy rains again slowed planting efforts, leaving fields damp to saturated
• A few warm, dry days ahead will see a surge in planted acres ahead of forecasted rain
• Farmers are prioritizing corn, field peas, soybeans, potatoes, and dry edible beans ahead of spring wheat or canola, considering the soon-approaching insurance coverage seeding date deadlines on the listed crops: report
• “Farmers are extremely concerned about seeding delays, leading some farmers to switch a small amount of planned corn or soybean acres into canola and spring wheat, while planned field pea acres have dropped in some parts of the Southwest in favour of more canola”

US Potash Inventory Rises as Farmers Skip on Price

High potash prices and a delayed spring are pushing US farmers to skip applications of the fertilizer. North American potash inventory in March was 3.3 million K20 tons — the highest since 2016, and 17% above average. Excess inventory in the US has helped push prices in New Orleans down 4% since April. We expect much of that surplus to move to Brazil, where potash commands a premium of $310 a metric ton ahead of the country’s planting season. Canpotex has sold potash through 4Q to India and China at $590 a ton cost and freight, setting off a scramble for supply from other buyers as Russia and Belarus trade remains sanctioned.

Mosaic, K+S, Intrepid and Nutrien are the publicly traded North American potash producers. Farmers skip potash applications when prices are high, relying on soil resources instead.

Argentina grains and financial markets closed Wednesday

Argentina’s financial and grains markets will be closed on Wednesday, May 25, for a local holiday. Normal market activity will resume on Thursday.