Global Ag News for Dec 29.22
COFCO, Sinograin Oilseed Venture to Begin Operations in January
An oilseed processing venture in China, jointly set up by food conglomerate COFCO Corp. and national stockpiler Sinograin, will start operations next month.
- The new company will give priority to processing of oilseeds from central reserves, according to a statement on COFCO’s official WeChat account
- China Enterprise United Oils & Oilseeds Co. was registered in September
- COFCO and Sinograin have also set up a joint venture to manage China’s central grain reserves
FUTURES & WEATHER
Wheat prices overnight are down 9 3/4 in SRW, down 11 in HRW, down 8 3/4 in HRS; Corn is down 3; Soybeans down 3; Soymeal down $0.33; Soyoil up 0.10.
For the week so far wheat prices are up 1 1/4 in SRW, down 2 in HRW, down 6 in HRS; Corn is up 13 1/4; Soybeans up 27 3/4; Soymeal up $0.71; Soyoil up 0.30.
For the month to date wheat prices are down 19 3/4 in SRW, down 28 1/2 in HRW, down 17 3/4 in HRS; Corn is up 12 3/4; Soybeans up 35 3/4; Soymeal up $42.00; Soyoil down 5.21.
Year-To-Date nearby futures are up 1% in SRW, up 9% in HRW, down -6% in HRS; Corn is up 15%; Soybeans up 13%; Soymeal up 12%; Soyoil up 17%.
Chinese Ag futures (MAR 23) Soybeans down 25 yuan; Soymeal up 25; Soyoil down 4; Palm oil down 58; Corn up 10 — Malaysian palm oil prices overnight were up 3 ringgit (+0.07%) at 4090.
There were changes in registrations (-30 Soymeal, -100 HRW Wheat). Registration total: 2,788 SRW Wheat contracts; 0 Oats; 154 Corn; 91 Soybeans; 774 Soyoil; 205 Soymeal; 310 HRW Wheat.
Preliminary changes in futures Open Interest as of December 28 were: SRW Wheat up 1,909 contracts, HRW Wheat up 311, Corn up 10,531, Soybeans down 6,843, Soymeal down 1,169, Soyoil down 1,659.
Brazil Grains & Oilseeds Forecast: Rio Grande do Sul and Parana: Mostly dry Thursday-Saturday. Scattered showers Sunday night. Temperatures near normal through Saturday, near to above normal Sunday. Mato Grosso, MGDS and southern Goias: Scattered showers through Sunday. Temperatures near normal through Sunday.
Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires: Mostly dry through Saturday. Scattered showers Sunday. Temperatures near to above normal Thursday-Saturday, near to below normal Sunday. La Pampa, Southern Buenos Aires: Mostly dry through Saturday. Scattered showers Sunday. Temperatures near to above normal Thursday-Saturday, near to below normal Sunday.
Northern Plains Forecast: Isolated showers Thursday. Mostly dry Friday-Saturday. Isolated to scattered showers Sunday. Temperatures near to above normal Thursday-Sunday. Outlook: Scattered showers Monday. Mostly dry Tuesday-Thursday. Isolated showers Friday. Temperatures near to below normal Monday-Tuesday, near to above normal Wednesday-Friday.
Central/Southern Plains Forecast: Isolated to scattered showers Thursday. Mostly dry Friday-Saturday. Scattered showers Sunday. Temperatures above normal through Sunday. Outlook: Scattered showers Monday. Mostly dry Tuesday-Thursday. Isolated showers Friday. Temperatures near to above normal Monday-Friday.
Western Midwest Forecast: Isolated to scattered showers Thursday-Saturday. Mostly dry Sunday. Temperatures above normal through Sunday.
Eastern Midwest Forecast: Isolated to scattered showers Thursday-Saturday. Mostly dry Sunday. Temperatures near to above normal Wednesday, above to well above normal Thursday-Sunday. Outlook: Scattered showers Monday-Tuesday. Mostly dry Wednesday-Thursday. Isolated showers Friday. Temperatures above to well above normal Monday-Friday.
The player sheet for Dec. 28 had funds: net buyers of 4,500 contracts of SRW wheat, buyers of 5,000 corn, buyers of 10,000 soybeans, buyers of 8,500 soymeal, and sellers of 4,500 soyoil.
- WHEAT SALE: Egypt’s General Authority for Supply Commodities said it contracted for a quantity of 200,000 tonnes of Russian wheat in a World Bank-funded tender.
- VEGETABLE OILS SALE: Egypt’s state grains buyer GASC said it bought 30,000 tonnes of soyoil and 12,000 tonnes of sunflower oil in a tender.
- RICE TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp. issued an international tender to purchase an estimated 113,460 tonnes of rice to be sourced from the United States. The deadline for submissions of price offers is Dec. 29.
- CORN TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp issued new international tenders to purchase around 25,000 tonnes of food-quality soybeans free of genetically modified organisms (GMOs).
- RICE TENDER: South Korea’s state-backed Agro-Fisheries & Food Trade Corp has issued an international tender to purchase an estimated 83,672 tonnes of rice to be sourced from the United States.
ETHANOL: US Weekly Production Survey Before EIA Report
Output and stockpile projections for the week ending Dec. 23 are based on four analyst estimates compiled by Bloomberg.
- Production seen lower than last week at 1.012m b/d
- Stockpile avg est. 24.036m bbl vs 24.067m a week ago
- The EIA in Washington is scheduled to release the report at 11:00am Thursday
Argentina Soy Exporters Sold $2.86 Billion From Nov. 28
Argentina’s soy exporters have liquidated $2.86 billion worth of sales since the government brought back a temporary exchange rate just for that sector on Nov. 28, according to an Economy Ministry statement.
The central bank bought $239 million in the official currency market on Wednesday, the largest daily purchase by the bank since late September, according to the ministry
Argentina’s soy sales near 80% of harvest, lag previous year
Argentina’s farmers have sold 78.9% of the 2021/2022 soybean harvest so far, the agriculture ministry said on Wednesday, as producers continue to benefit from a preferential exchange rate aimed at attracting sorely needed U.S. dollars.
Still, the amount of soybeans sold to date slightly lags the 80% sold at the same point in the previous 2020/2021 season.
Between Dec. 15 and Dec. 21, producers in Argentina sold 730,300 tonnes of the 44 million-tonne 2021/2022 soybean crop, one of the highest weekly figures in recent months.
Soybean sales spiked last month after the government revived a policy that allowed farmers to tap a preferential exchange rate for transactions of the grain. The policy is set to end on Friday.
Argentina is the world’s leading exporter of soymeal, as well as a major supplier of corn and wheat.
Meanwhile, the government said 74% of the country’s 2021/2022 corn crop, which totaled 59 million tonnes, had been sold to date, behind the 76.8% sold in the same period during the 2020/2021 cycle.
Planting of corn for the 2022/23 cycle began in September in Argentina, the third-largest exporter of the cereal, where a prolonged drought affected the development of early-planted grains, the major Rosario grains exchange said.
Farmers have sold 6.4 million tonnes of wheat from the 2022/23 campaign, which represents 48% of the total production of 13.4 million tonnes estimated by the government.
SovEcon Raises Russian 2023 Wheat Crop Outlook After Ample Rains
Next year’s Russian wheat harvest is now seen at 86m tons, up 0.4m tons from a prior estimate, researcher SovEcon says in an emailed note.
- That’s based on good crop conditions amid ample moisture
- Winter-wheat is in better-than-usual shape in the Center and Volga Valley regions
- Still, the harvest would be down from this year; SovEcon pegs 2022 crop at 101.2m tons
- Some farmers are curbing wheat seeding due to heavy rains during autumn plantings and high export taxes
- NOTE: SovEcon says its estimates are based on the territory Russia controlled as of the start of 2022
Ukraine’s Black Sea Crop Exports Doubled W/w in Week to Dec. 25
Crop exports from Ukraine’s ports under the Black Sea Grain Initiative totaled about 1.2m tons in the week to Dec. 25, according to data posted by the Joint Coordination Centre.
- That compares with about 514,848 tons the prior week
- Total for week to Dec. 25 includes six corn cargoes destined for China
- TOTAL TONNAGE: More than 15.9m tons of crops have shipped since the initiative was agreed in late July
Indonesia delays mandatory palm oil biodiesel 35% blending to Feb. 1 – energy ministry
Indonesia will start its mandatory palm oil biodiesel 35% blending on Feb. 1, a month later than initially planned, the energy ministry said.
Indonesia’s will keep its 30% mandatory palm biodiesel blending, a policy in place since 2020, throughout January, it said in a statement late Wednesday.
Egypt’s GASC Wheat Purchases Reach at Least 4.18m Tons
Egypt’s state buyer bought 200,000 tons of wheat in a tender this week, bringing its total purchases of the grain for the 2022-23 season so far to at least 4.18 million tons.
- NOTE: USDA forecasts Egypt to import 11 million tons during the season, and about half is typically booked by the government
- The General Authority for Supply Commodities this year began booking some wheat in private talks with traders, marking a shift from its historical process of securing supply in tenders
- Near this time last year, GASC had booked about 3.83 million tons of wheat in tenders
India Extends Unrestricted Imports of Refined Palm, Some Pulses
India further extended unrestricted inbound shipments of refined palm and palmolein oils for an indefinite period, according to a notification by the commerce ministry.
- The concession was set to end on Dec. 31
- Imports are not permitted through any port in Kerala state, the notification said
- The government said in a separate notification that unrestricted purchases of black gram and pigeon peas will continue until March 31, 2024
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