Global Ag News for Apr 23.24

TOP HEADLINES

Brazil Makes First Shipment of Ethanol to US Jet Fuel Plant

• Top sugar cane ethanol maker Raizen sent feedstock to Georgia
• Brazil mills are certified to serve green aviation fuel market

Brazilian company Raizen SA made the country’s first shipment of sugar-cane ethanol to be converted into green jet fuel in a US plant, as competition heats up to supply the nascent market.

The sugar and ethanol maker, a joint venture between Shell Plc an Cosan SA, was behind a cargo of ethanol sent to the US in March to be used as feedstock for sustainable aviation fuel (SAF), according to documents seen by Bloomberg.

Data from consultancy firm Datagro showed a ship carrying about 25 million liters of ethanol traveled from Brazil’s main port to Savannah, Georgia, near the location where LanzaJet Inc. earlier this year inaugurated the world’s first plant that makes sustainable jet fuel from ethanol. This was the first vessel carrying Brazilian ethanol to take that route, Datagro said.

FUTURES & WEATHER

Wheat prices overnight are up 8 3/4 in SRW, up 6 3/4 in HRW, up 8 in HRS; Corn is up 1; Soybeans up 3 1/4; Soymeal up $1.10; Soyoil up 0.20.

For the week so far wheat prices are up 29 1/2 in SRW, up 26 1/4 in HRW, up 18 1/4 in HRS; Corn is up 7 3/4; Soybeans up 14 1/4; Soymeal up $2.70; Soyoil up 0.93.

For the month to date wheat prices are up 20 1/2 in SRW, up 29 1/2 in HRW, up 17 3/4 in HRS; Corn is down 3 3/4; Soybeans down 25 1/2; Soymeal up $4.90; Soyoil down 2.62.

Year-To-Date nearby futures are down 7.8% in SRW, down 5.8% in HRW, down 8.2% in HRS; Corn is down 6.5%; Soybeans down 9.9%; Soymeal down 10.4%; Soyoil down 5.4%.

Chinese Ag futures (JUL 24) Soybeans down 9 yuan; Soymeal up 14; Soyoil up 138; Palm oil up 86; Corn up 2 — Malaysian Palm is up 43. Malaysian palm oil prices overnight were up 43 ringgit (+1.09%) at 3987.

There were no changes in registrations. Registration total: 438 SRW Wheat contracts; 0 Oats; 10 Corn; 499 Soybeans; 710 Soyoil; 26 Soymeal; 0 HRW Wheat.

Preliminary changes in futures Open Interest as of April 19 were: SRW Wheat down 2,922 contracts, HRW Wheat down 2,688, Corn up 6,099, Soybeans down 2,015, Soymeal up 7,568, Soyoil down 5,675.

Northern Plains: It was cold over the weekend with widespread frosts and freezes that led to slower fieldwork progress. The region will await potential for more widespread and heavier showers later this week and weekend. This favors the Dakotas more than Montana, but all areas have potential for some needed rain. If rain is heavy, it could lead to some wetter fields and slow planting progress.

Central/Southern Plains: Cold temperatures over the weekend produced some frosts in the southwestern areas of the region and may have produced some frost damage to wheat. The front half of the week will be dry and good to get out and do some fieldwork. But afterward, several storm systems are going to move through the region going into early May that will keep the region busy. Widespread showers and thunderstorms, some severe weather and heavy rain, and strong winds are all going to be on the table in the active pattern. That does include some better chances at getting moisture into drier areas around Kansas that have seen drought increasing lately, but could slow down planting progress in places that have ample soil moisture at the moment like Nebraska. The gaps between storms will be short for at least 10 days. Though not all areas will see rain falling from each storm, this will likely lead to some sort of delays.

Midwest: Cold air moved into the region over the weekend and produced areas of frosts. It was light and brief, however. More frost will be possible on Wednesday and Thursday mornings. That burst of cold is coming after a small storm moves through on Monday and Tuesday that brings streaks of rain through the region. Warmth will return late this week but so will an active pattern that will bring multiple storm systems through going into early May. Gaps between storms will be short, leading to delays in planting either due to soaked fields or just wet conditions.

Delta: A system went through over the weekend and brought some more heavy rain across the middle of the region again, keeping soils wet and likely causing delays to planting, though that had been off to a quick start in most areas anyway. It will be quieter for most of the week with some isolated showers possible Wednesday and Thursday, but will get busy again as the storm track runs from the Southern Plains through the Midwest, bringing risks of thunderstorms, severe weather, and heavy rain through the region going into May.

Brazil: The wet season is effectively over, though some isolated showers may still move through Mato Grosso and the far north at times going into May. Much of the safrinha corn growing areas will be dry for the foreseeable future, which will force corn to draw upon its limited subsoil moisture as the crop goes through the rest of pollination and grain-fill. Damage to the crop will become more apparent with time. Rio Grande do Sul, which is in the midst of corn and soybean harvest, will see a front move in on Monday and stick around for a couple of days, but then pull back south later this week. The front probably makes a return next week, which may mess with harvest.

Argentina: A front entered the country this weekend and will move north on Monday and Tuesday, but then be continually pulled back south throughout the week. Areas of heavy rain will affect harvest and make it difficult going into May as well as lead to quality issues for a fairly good looking crop. Soil moisture for the coming winter wheat crop is very favorable, however.

Europe: Cool and wet conditions have infiltrated much of the region over the last several days and continues for most of this week as well. Frosts have been common across northern growing areas where wheat is less developed, but has likely slowed down early planting of summer crops. Areas in the northwest like France and the UK continue to be too wet while Spain and areas in the south could use more rain. They are getting some better rainfall in the more active pattern and Spain will get in on it this weekend and next week as well.

Black Sea: The storm track has favored systems moving through western and central Ukraine at the expense of eastern Ukraine and most of southwestern Russia recently. That pattern continues for the next week or two as well. Hotter and drier conditions in the east have been unfavorable for wheat that is developing quickly after a warm and wet winter. Crop conditions for winter grains are no doubt falling in the region while planting progress is likely quicker than normal.

Australia: Outside of a small area in the northeast, it was dry through the weekend, which is likely to continue this week as well. Cotton and sorghum harvest continues to increase in mostly favorable conditions. But wheat and canola are being planted in fair to poor soil moisture for the most part. This could cause delays to planting as the country awaits better soil moisture conditions for the developing winter crops. The ending El Nino and eventual turn to La Nina should favor the winter crops later this year.

The player sheet for 4/22 had funds: net buyers of 8,000 contracts of SRW wheat, buyers of 5,000 corn, buyers of 5,500 soybeans, buyers of 1,000 soymeal, and buyers of 3,500 soyoil.

TENDERS

• WHEAT PURCHASE: Algeria’s state grains agency OAIC has issued an international tender to purchase a nominal 50,000 metric tons of durum wheat
• SOYMEAL PURCHASE: Iranian state-owned animal feed importer SLAL is believed to have purchased about 60,000 metric tons of soymeal expected to be sourced from Argentina or Brazil in an international tender last week
• WHEAT TENDER: The Taiwan Flour Millers’ Association has issued an international tender to purchase an estimated 106,675 metric tons of grade 1 milling wheat to be sourced from the United States

PENDING TENDERS

• MILLING WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy up to 120,000 metric tons of milling wheat that can be sourced from optional origins.
• FEED BARLEY PURCHASE: Jordan’s state grains buyer issued an international tender to purchase up to 120,000 metric tons of animal feed barley.

 

 

TODAY

US Inspected 1.624m Tons of Corn for Export, 435k of Soybeans

In week ending April 18, according to the USDA’s weekly inspections report.

• Corn: 1,624k tons vs 1,354k the previous wk, 939k a yr ago
• Wheat: 450k tons vs 620k the previous wk, 364k a yr ago
• Soybeans: 435k tons vs 447k the previous wk, 380k a yr ago

US Corn, Soybean, Wheat Inspections by Country: April 18

Following is a summary of USDA inspections for week ending April 18 of corn, soybeans and wheat for export, from the Grain Inspection, Packers and Stockyards Administration, known as GIPSA.

• Soybeans for China-bound shipments made up 219k tons of the 435k total inspected
• Mexico was the top destination for corn inspections, Japan led in wheat

WHEAT/CEPEA: Trades move at a slow pace in this offseason period

In this offseason period, wheat growers have been evaluating market conditions, weather forecasts and other aspects in order to decide about planting wheat or other crops. For now, the area is expected to decrease, especially because of high production costs. In the central area of Brazil, wheat sowing activities have already started.

Players from the industry, in turn, are focused on the high supply of wheat from Argentina at more competitive prices compared to values in Brazil, leading purchasers to be unwilling to pay higher prices for batches in the Brazilian spot market. Despite the crop failure in Brazil in 2023 and the consequent low supply of high-quality product for the bakery sector, domestic quotations have not presented significant oscillations since November/23. In this scenario, only a few trades have been closed.

According to data from Cepea, between April 12 and 19, the prices paid to wheat farmers (over-the-counter market) rose 0.3% in Santa Catarina, 1.54% in Rio Grande do Sul and 0.81% in Paraná. In the wholesale market (deals between processors), values moved up 5.94% in São Paulo, 0.41% in Paraná, 5.04% in Rio Grande do Sul, but decreased 0.18% in Santa Catarina. Dollar quotations valued 1.37% against Real, at BRL 5.195 on April 19.

BYPRODUCTS – The demand for wheat bran and flour continues low, keeping prices in a downward trend. From April 12-19, values of wheat bran in bags moved down 0.65% and prices of the product in bulk, 1.68%.

According to data from Secex, Brazil imported 167.05 thousand tons of wheat up to the second week of April, below the 312.71 thousand tons registered in April last year. Exports totaled 379.19 thousand tons, against 280.65 thousand tons in the same month of 2023.

Warmer Weather, Rains Aiding Crops in Most of Europe: MARS

Hotter-than-average spring temperatures and adequate water supplies have benefited crops across most of Europe, the European Union’s Monitoring Agricultural Resources unit said Monday in a report.

• Conditions have been particularly favorable over the Iberian peninsula
• Areas of north western Europe have seen conditions improve, but “inadequately drained fields are unlikely to fully recover from the overly wet conditions during autumn and winter”
• Sowing was most “severely” affected in Ireland and the UK
• Greece, Cyprus, Morocco and Algeria have seen droughts impact winter crops

 

Biofuels refiner Ecoceres expects Malaysia unit to start up in second half 2025

Biofuels refiner Ecoceres is aiming to start up its Malaysia-based biofuels production unit in the second half of 2025, a company executive said on Monday.

The unit will have a total capacity of 350,000 metric tons per year of biofuels, which consists of 220,000 of sustainable aviation fuel and 130,000 tpy of hydrotreated vegetable oil, its chief commercial officer Jeremy Baines said at an Argus biofuels conference in Singapore.

Used cooking oil and palm oil mill effluent will be among the key feedstocks for the plant, located in Malaysia’s Johor region, he added, without elaborating where they will source the products from.

The Bain-backed biofuels producer, which currently operates a 260,000-tpy biofuels unit in Jiangsu, China, earlier signed an agreement with a waste management firm backed by the Chinese city of Shenzhen to source for biofuel feedstocks.

US Egg Production Rose 0.7% in March From Year Ago: USDA

Brazil Fertilizers Stable to Higher as Demand Moves to Soybeans

Fertilizer prices were mixed in Brazil as nitrogen demand remains at a seasonal lull and sellers switch to potash and phosphates for soybeans. Urea prices were up after several weeks of decline, with ammonium sulfate and phosphate also inching higher as potash remained stable.

Euronext to launch salmon contract, replacing Fish Pool futures

• WILL LIST NEW CASH-SETTLED SALMON FUTURES ON EURONEXT PARIS COMMODITY DERIVATIVES MARKET BASED ON THE SITAGRI SALMON SPOT INDEX
• NOK-DENOMINATED SALMON FUTURES ON THE FISH POOL REGULATED MARKET WILL CEASE TRADING AT THE END OF 2024

 

 

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