TOP HEADLINES
Mexico Exempts Wheat, Fertilizers From Tariffs to Dampen Prices
Mexico said products including wheat and fertilizers will be temporarily exempt from tariffs in order to dampen inflation, according to a presidential decree published in the evening edition of the Dec. 31 Official Gazette.
Tariff exemptions for products that are part of or linked to the basket of staple foods applies until Dec. 31, 2025
Other products exempt from tariffs include wheat, wheat flour, steel and laminated products, caps for jars, fish nets, buoys, ropes and ammonium sulfate, a fertilizer
FUTURES & WEATHER
US grain markets will open at 8:30AM Chicago time.
For the week so far wheat prices are up 5 in SRW, up 4 3/4 in HRW, up 1/2 in HRS; Corn is up 4 1/2; Soybeans up 20 3/4; Soymeal up $6.40; Soyoil up 0.36.
Chinese Ag futures (MAY 25) Soybeans down 1 yuan; Soymeal up 24; Soyoil up 98; Palm oil down 28; Corn up 4 — Malaysian Palm is down 115.
Malaysian palm oil prices overnight were down 115 ringgit (-2.59%) at 4333.
There were changes in registrations (286 Soybeans). Registration total: 20 SRW Wheat contracts; 72 Oats; 17 Corn; 536 Soybeans; 879 Soyoil; 1,665 Soymeal; 105 HRW Wheat.
Preliminary changes in futures Open Interest as of December 31 were: SRW Wheat down 1,082 contracts, HRW Wheat down 337, Corn up 13,688, Soybeans up 3,333, Soymeal up 4,867, Soyoil up 8,100.
Brazil: Rio Grande do Sul and Parana: Scattered showers Thursday-Friday. Temperatures near to above normal through Friday. Mato Grosso, MGDS and southern Goias: Scattered showers through Friday. Temperatures near normal through Friday.
Argentina: Cordoba, Santa Fe, Northern Buenos Aires: Mostly dry Thursday-Friday. Temperatures near to above normal through Friday. La Pampa, Southern Buenos Aires: Mostly dry Thursday-Friday. Temperatures near to below normal through Friday.
Northern Plains: Isolated snow through Friday. Scattered snow Saturday. Temperatures below normal through Saturday. Outlook: Scattered snow Sunday. Isolated showers Monday-Thursday. Temperatures below to well below normal Sunday-Wednesday, near to below normal Thursday.
Central/Southern Plains: Isolated snow north Wednesday night-Thursday. Mostly dry Friday. Scattered showers Saturday. Temperatures near to above normal Thursday, below normal north and above normal south Friday-Saturday. Outlook: Scattered showers Sunday. Isolated showers Monday-Thursday. Temperatures below normal north and above normal south Sunday, below to well below normal Monday-Wednesday, near to below normal Thursday.
Midwest: West: Isolated showers Thursday. Mostly dry Friday-Saturday. Temperatures near normal Thursday, near to below normal Friday-Saturday. East: Lake-effect snow through Saturday. Temperatures near normal Thursday, near to below normal Friday, below normal Saturday. Outlook: Scattered showers Sunday-Monday. Lake-effect snow Tuesday-Wednesday. Isolated showers Thursday. Temperatures below normal Sunday, below to well below normal Monday-Thursday.
The player sheet for Dec. 31 had funds: net buyers of 1,500 contracts of SRW wheat, buyers of 11,000 corn, buyers of 12,500 soybeans, buyers of 3,500 soymeal, and buyers of 3,000 soyoil.
TENDERS
- FEED BARLEY TENDER CANCELED, WHEAT TENDER ISSUED: Jordan’s state grains buyer is thought to have made no purchase in an international tender on Tuesday seeking up to 120,000 metric tons of animal-feed barley, with a rescheduled tender expected next week, European traders said. Separately, the state buyer issued a tender seeking 120,000 tons of wheat for shipment in February and March, with a bidding deadline on Jan. 7, the traders said.
PENDING TENDERS
- RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 metric tons of rice.
- RICE TENDER: Bangladesh’s state grains buyer issued another international tender to purchase 50,000 metric tons of rice.
TODAY
CROP SURVEY: US Soybean Crush and Corn for Ethanol
The following is from a Bloomberg survey of five anlaysts.
- Soybean crush seen at 208.1m bu in Nov., a 4% rise from a year ago
- Crude and once-refined soybean-oil reserves at end of November seen at 1.496b lbs, down from 1.599b
- Corn used in ethanol production seen up 1.4% y/y to 463.7m bu
Soybean planting in RS reaches 96% of the area and corn planting 95%, says Emater
Last week, planting of the 2024/25 soybean crop in Rio Grande do Sul reached 96% of the area projected by Emater/RS, which is 6,811,344 hectares. The estimated average yield is 3,179 kilos per hectare. “The end of soybean planting is occurring more slowly due to the sequence of sowing in areas previously occupied by other crops, such as corn and tobacco, or in crop-livestock integration (ILP) regions, where the removal of cattle or the harvesting of forage seeds takes place later,” Emater said in a statement. “Soybean planting should be completed by the first half of January, as the areas are cleared.”
Also according to Emater, sowing has progressed moderately, reaching 95% of the area projected for 2024/2025, of 748,511 hectares. The cereal harvest has begun in the northwest of the state, reaching 1%. “Sowing should be completed throughout January, as the areas occupied by these crops are cleared for new planting,” he explained. “Although the rainfall in recent weeks has not been uniform and significant throughout the state, the conditions for grain filling are adequate, mainly due to the predominance of mild temperatures, which favor both the preservation of moisture in the soil and the optimization of the plants’ photosynthetic process.”
According to Emater, the yield obtained is slightly below the initial projection of 7,116 kg/ha, but higher than the previous harvest.
As for the rice crop, Emater says that planting is practically complete. “Producers are carrying out the necessary cultural treatments, such as adequate irrigation to maintain the flood level, the application of top dressing to meet the nutritional demand, especially in relation to nitrogen, and the application of selective herbicides to control weeds, preparing the crops for the start of the reproductive period.”
The Rio Grande do Sul Rice Institute (Irga) projects that 948,356 hectares will be planted with rice this harvest.
Indonesia Aims to Finalize B40 Biodiesel Rule This Week: Antara
Govt aims to finalize regulations on implementing the B40 biodiesel blending mandate this week, state-owned news agency Antara reports, quoting Yuliot Tanjung, deputy energy and mineral resources minister.
Govt to increase biodiesel blending to 40%, and will give transition time for its implementation, says the report quoting Tanjung
Indonesia’s palm oil B40 delay causes market uncertainties
Indonesia has yet to implement a higher mandatory blend of biodiesel planned for Jan. 1 as industry participants await the technical regulations for the rollout, causing confusion among palm oil traders.
The government had pledged to mandate 40% mix of palm oil-based fuel in biodiesel from Jan. 1, known as B40, from a 35% blend currently in force.
The plan for higher biodiesel blend by the world’s biggest palm oil producer helped send the benchmark palm oil contract in Malaysia nearly 20% higher in 2024 due to expectations of lower Indonesian palm oil exports.
As of Thursday, Indonesian state energy firm Pertamina, which operates the country’s largest petrol station network, and biodiesel producers group APROBI said they were waiting for the relevant official decrees before selling the fuel.
“Once the regulation has been issued, there will be time to transition for the sale. At the moment we have prepared Plaju and Kasim refineries for processing of B40,” Pertamina spokesperson Fadjar Djoko Santoso said.
Members of APROBI cannot draw contracts for biodiesel distribution without a decree from the government, Secretary General Ernest Gunawan said.
Edi Wibowo, director of bioenergy at the energy ministry, said on Thursday that he was awaiting further instructions for B40, without providing more details.
Other senior officials at energy ministry did not respond to queries about B40 implementation.
Palm oil industry watchers had expected the rollout of the policy to be gradual. Meanwhile, palm oil traders are waiting for the official volume of biodiesel that Indonesia will allocate to fuel retailers to gauge how much exports will be affected.
Indonesian officials have previously said the country plans to allocate 15.62 million kilolitres (4.13 billion gallons) of palm oil-based fuel for B40 in 2025.
Meanwhile, analysts are concerned about plans to only subsidise B40 for non-industrial use, which represents less than half of the country’s demand.
“There are hurdles for the bullish sentiments as the participants are still not convinced over the fate of the Indonesian B40 biodiesel policy success,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.
Indonesia Earmarks 20M Ha of Forest For Food and Energy: CNN
The government identified about 20m hectares of forest that can be used for food, energy and water-related programs, reports local news outlet CNN Indonesia, citing Forestry Minister Raja Juli Antoni.
Govt sees potential to use 1.1m ha forest to produce 3.5m tons of rice each year and 1.5m ha to grow sugar palm for bioethanol, according to the report citing Antoni
Malaysia Dec. Palm Oil Exports Fall to 1.382m Tons: AmSpec
Malaysia’s palm oil exports fell to 1.382m tons in December from 1.417m tons in November, according to AmSpec Agri. Palm oil exports fell 2.51% m/m
Swiss, Egyptian Firms Win Contract to Build Grain Silos in Iraq
Iraq picked Switzerland’s Bühler and Egypt’s SAMCO to build five silos across the country, according to a statement from the country’s trade ministry.
- Silos will have total capacity of 300,000 tons
- Facilities to be located in the provinces of Najaf, Anbar, Muthanna, Wasit and Kirkuk, Haider Nouri Al-Garrawi, director general of the state-run grain board, said in a video released by the ministry
- Iraq is planning another 20 silos in a bid to boost domestic grain storage, Trade Minister Atheer Dawood in the video
- Iraq produced 6.3 million tons of wheat last year, Al-Garrawi said
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