Global Ag News for Sep 17

TODAY – COMMITMENTS OF TRADERS

Wheat prices overnight are up 2 in SRW, up 1 in HRW, down 1/2 in HRS; Corn is down 3/4; Soybeans down 9 3/4; Soymeal down $0.22; Soyoil down 0.32.

For the week so far wheat prices are up 25 3/4 in SRW, up 39 in HRW, up 27 1/4 in HRS; Corn is up 11 1/4; Soybeans up 2 1/2; Soymeal down $0.04; Soyoil up 0.56.

For the month to date wheat prices are down 7 1/4 in SRW, up 9 1/2 in HRW, up 2 1/2 in HRS; Corn is down 5 1/2; Soybeans down 6 1/4; Soymeal down $3.70; Soyoil down 2.23.

Chinese Ag futures (JAN 22) Soybeans up 53 yuan ; Soymeal up 37; Soyoil down 124; Palm oil down 172; Corn down 7 — Malasyian Palm is down 66. Malaysian palm oil prices overnight were down 66 ringgit (-1.49%) at 4374 amid concern that falling soybean oil prices will diminish the tropical oil’s appeal and boost competition between the two rival fuels.

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

Midwest corn, soybean and winter wheat forecasts: West: Isolated to scattered showers through Friday. Mostly dry Saturday-Sunday. Scattered showers Monday. Temperatures above to well above normal through Monday. East: Mostly dry Thursday. Isolated showers Friday-Saturday. Mostly dry Sunday. Isolated showers Monday. Temperatures above normal through Monday. 6 to 10 day outlook: Isolated to scattered showers Tuesday-Wednesday. Mostly dry Thursday-Saturday. Temperatures above normal Tuesday, near to above normal Wednesday, near normal Thursday-Friday, near to above normal Saturday.

The player sheet for Sept. 16 had funds: net buyers of 2,000 contracts of  SRW wheat, sellers of 4,000 corn, buyers of 1,000 soybeans, buyers of 2,500 soymeal, and  sellers of 6,000 soyoil.

There were no changes in registrations. Registration total: 1,180 SRW Wheat contracts; 2 Oats; 17 Corn; 1 Soybeans; 365 Soyoil; 1 Soymeal; 1,275 HRW Wheat.

Preliminary changes in futures Open Interest as of September 16 were: SRW Wheat down 4,243 contracts, HRW Wheat up 137, Corn down 6,314, Soybeans down 1,240, Soymeal down 1,743, Soyoil up 335.

TENDERS

• SOYBEAN SALE: The U.S. Department of Agriculture confirmed private sales of 132,000 tonnes of U.S. soybeans to China for delivery in the 2021/22 marketing year that began Sept. 1.
• CORN AND FEED WHEAT PURCHASE: South Korea’s largest animal feed maker Nonghyup Feed Inc (NOFI) purchased an estimated 201,000 tonnes of animal feed corn and 65,000 tonnes of feed wheat in an international tender that closed on Thursday
• SOYMEAL PURCHASE: Algerian state agency ONAB is believed to have purchased about 30,000 tonnes of volume of soymeal in a tender for the same volume which closed on Wednesday
• WHEAT PURCHASE: Japan’s Ministry of Agriculture bought 118,771 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.
• WHEAT TENDER UPDATE: Bangladesh’s state grains buyer received the lowest price offer assessed at $421.19 a tonne CIF liner out in an international tender to purchase and import 50,000 tonnes of wheat, which closed on Thursday
• WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy 120,000 tonnes of milling wheat sourced from optional origins
• WHEAT TENDER: The Taiwan Flour Millers’ Association issued an international tender to purchase 49,580 tonnes of grade 1 milling wheat to be sourced from the United States

PENDING TENDERS

• WHEAT TENDER: A government agency in Pakistan issued an international tender to purchase and import 500,000 tonnes of wheat
• WHEAT TENDER: Morocco’s state grains agency ONICL issued a tender to import about 363,000 tonnes of U.S.-origin soft wheat under a preferential tariff import quota
• WHEAT FLOUR TENDER: The state purchasing agency in Mauritius issued an international tender to buy 47,000 tonnes of wheat flour to be sourced from optional origins

U.S. Sold 1.27M Tons of Soybeans Last Week; 249K of Corn: USDA

USDA releases net export sales report on website for week ending Sept. 9.

• Corn sales fell to 249k tons vs 906k in previous week
• All wheat sales rose to 617k tons vs 388k in previous week
• Soybean sales fell to 1,266k tons vs 1,472k in previous week

U.S. Export Sales of Soybeans, Corn and Wheat by Country

• China bought 945k tons of the 1.27m tons of soybeans sold in the week
• Mexico was the top buyer of corn and Nigeria led in wheat

U.S. Export Sales of Pork and Beef by Country

• Mexico bought 5.8k tons of the 25.3k tons of pork sold in the week
• South Korea led in beef purchases

Argentine Corn, Wheat Crop Estimates Sept. 16: Exchange

The Buenos Aires Grain Exchange releases weekly report on website.

Corn 2021-22 seedings est. at 7.1m ha, production at 55m tons

Corn planting 2.3% complete

U.S. generation of renewable fuel credits fell in August -EPA

The United States generated fewer renewable fuel blending credits in August versus the month prior, data from the Environmental Protection Agency showed on Thursday.

About 1.21 billion ethanol (D6) blending credits were generated in August, versus 1.27 billion in July, according to the data.

About 421 million biodiesel (D4) blending credits were generated last month, up from 359 million the month prior.

The credits are used by oil refiners and importers to show compliance with EPA-mandated ethanol blending quotas for petroleum-based fuels. They are generated with every gallon of biofuel produced.

U.S. Barge Shipments of Grain Fell 43% Last Week: USDA

Shipments along the Mississippi, Illinois, Ohio and Arkansas rivers declined in the week ending Sept. 11 from the previous week, according to the USDA’s weekly grain transportation report.

• Barge shipments of corn fell 55% from the previous week
• Soybean shipments down 54% w/w

U.S. Grain Movement by Rail Up 77.1% Week Ended Sept. 8: USDA

The following table summarizes the number of railcars hauling U.S. grain to Pacific Northwest, Texas Gulf, Mississippi River ports and to Mexico, according to data in the USDA’s weekly transportation report.

U.S. barge costs spike weeks after Hurricane Ida; CHS terminal under repair

Barge freight costs for moving grains in the Midwestern United States spiked on Thursday due to ongoing logistical problems more than two weeks after Hurricane Ida, while CHS Inc said the timeline to reopen its terminal remains uncertain.

CHS Inc, a farmer cooperative and grain trader, said it expected its Myrtle Grove, Louisiana, grain export terminal to be operational by the height of the U.S. corn and soy harvest but could not be more specific.

The terminal, which unloads grain barges and loads ocean-going vessels for export, remains without power from the local utility provider and repair crews are using an onsite generator, it said. Power will have to be restored to resume shipments.

Global grain trader Cargill Inc reopened its Westwego, Louisiana, grain export terminal this week, while rival exporters Louis Dreyfus Co and Archer-Daniels-Midland Co have been loading export shipments for several days.

A Destrehan, Louisiana, facility owned by Bunge Ltd BG.N has been “running intermittently,” the company said Thursday.

Problems at the Gulf are elevating costs for barge freight along Midwest rivers, cash grain traders said. Delays in unloading barges arriving at the Gulf are creating a shortage of empty barges needed upriver as the harvest of corn and soybeans begins in the heart of the Midwest.

Barges on the Mississippi River from Memphis, Tennessee, through Cairo, Illinois, were offered Wednesday at 750% of tariff, a surge from 650% two days earlier in a market where moves of 10 percentage points are more common. BG/US

Ukraine Completes Wheat Harvesting With Bumper Crop

Ukraine’s farmers threshed more than 33m tons of wheat as of Sept. 17, taking harvesting to 100% of the crop, according to Agriculture Ministry data.

• It’s in all-time high harvest, and is up 33% from last year
• Harvest yield for wheat was 4.65 tons a hectare this season

Oilseed Meal Shipments From India Fall 14% M/m in August: Group

Oilseed meal exports fell to 164,831 tons from 191,188 tons a month earlier, the Solvent Extractors’ Association of India said in an emailed statement Friday.

• NOTE: Exports totaled 171,515 tons in August 2020
• Soybean meal exports in August 10,975 tons vs 26,725 tons in July
  • Rice bran extract sales 72,638 tons vs 39,758 tons
  • Castor seed meal exports 18,160 tons vs 29,940 tons
  • Rapeseed meal shipments 63,058 tons vs 94,765 tons

MPOB: Brazil’s Jan-Aug soybean oil imports surge to more than 20-year high

Brazil’s soybean oil imports from January to August have soared to a more than 20-year high amid rising domestic prices, a cut in production and a local regulation allowing imported feedstocks for biodiesel output.

In the year through Aug. 31, Brazil imported 86,130 mt of the vegetable oil, the highest volume for the period since 110,530 mt in 1999, according to data from the Ministry of Agriculture. As a comparison, by this time in 2020 Brazil had imported only 22,119 mt.

So far in 2021, Argentina has been the top soybean oil supplier to Brazil, accounting for 55% of all Brazilian purchases, followed by Paraguay, with a share of 42%. The three countries are part of the Mercosur trade bloc.

On Sept. 14, sources said a Brazilian biodiesel producer had finalized the import of 15,000 mt of Argentinian soybean oil for shipment in September, with no further details such as prices disclosed.

According to participants, such imports follow rising domestic prices of soybean oil, above export parity in certain cases. S&P Global Platts on Sept. 14 assessed the Brazilian FOB Paranagua soybean oil price for October loading at $1,317.04/mt, up by more than 50% on the year.

“Biodiesel producers have been paying attention to that, so when Argentinian soybean oil is cheaper [than the domestic one], they import,” a Brazilian trader said. Soybean oil is the main raw material for biodiesel production in Brazil.

In late 2020, the country’s oil and biofuel regulator ANP authorized the use of imported feedstocks for biofuel production amid a similar moment of high domestic prices of the vegetable oil.

Russia Harvested 71.1M Tons of Wheat as of Sept. 16: Ministry

Russian farmers so far this year have harvested 100m tons of grains from 37.8m hectares, including 71.1m tons of wheat, as of Sept. 16, according to the Agriculture Ministry.

• Farmers also sowed 8.8m hectares with winter grains, which is about the same as in previous season at this time of the year

Russia 2021 Wheat Harvest Now Seen at 74m-75m Tons, IKAR Says

The outlook is due to smaller prospects for crops in the Central, Volga and Urals regions, Dmitry Rylko, director general at consultant IKAR in Moscow, says by email.

• Barley crop is seen at 17.5m-18m tons, corn at 14m-14.5m tons and total grains output at 117.5m-120m tons

Russia Grain Union Sees Wheat Harvest at 78.5M Tons: IFX

Russian’s grain union raised its wheat harvest forecast to 78m-78.5m tons from 76m tons, Interfax reports, citing the director of the union’s analytical department Elena Tyurina.

• Cites reduction of yield gap compared to last year, and grain harvesting moving to Siberian regions, where there were more favorable crop conditions
• Sees potential wheat exports in 2021-2022 of 35.5m-36m tons; previously saw 34m tons

Strategie Cuts EU Wheat Crop Est.; About 40% Below Milling Grade

EU soft-wheat production is now seen at 129.1m tons, down 2.4m tons from an August outlook, partly as heavy rains hurt harvests in the west, consultant Strategie Grains said in a report.

• Quality prospects have also declined and about 40% of EU soft-wheat crop may not meet milling standards, versus 27% last season
  • That’s largely due to low specific weight, a key quality measure
• Outlook for EU wheat exports pared by 1.7m tons to 31m tons
  • Still, the grain is competitive globally and sales are up 3.7m tons from last year
  • Stockpiles are likely to end the season flat y/y, keeping the market “extremely tight”
• Global demand for wheat and barley squeezed amid low supplies
• Latest EU crop forecasts for the 2021-22 season:

 French Oilseed Group Sees Rapeseed Planting Rising 15%-20% Y/y

Rapeseed sowing is likely to rise sharply due to high prices, favorable weather and better yields, French oilseed group FOP said in a statement this week.

French Corn Conditions Hold Steady in Week to Sept. 13: AgriMer

French corn conditions held unchanged in the week to Sept. 13, FranceAgriMer data showed on Friday

• 89% of the crop was rated in good or very good condition, the same as in the prior week
• That’s up from 59% at the same time last year

Argentina Seeks Executive Powers Over Export Taxes Through 2024

The government wants to extend by three years the date through which it can control tax rates on exports, according to its new budget bill that still requires congressional approval.

• Executive powers over export taxes, laid out in a 2019 law, were set to expire at the end of this year
• The budget bill doesn’t seek to tweak the maximum rates for commodities fixed in the 2019 law, including 33% for soybeans; 15% for corn and wheat; and 8% for oil, natural gas and mining

Western Australia’s Crop Outlook Cut for 2021 After Severe Frost

Severe frost and lower rainfall across Western Australia’s grain belt will hurt wheat and canola production in the 2021 season, according to a report from the Grain Industry Association of Western Australia.

Climate Change Drives Farmers in Top Soy Exporter to Corn

Soybean planting is set to shrink to the lowest in 15 years in Argentina, the biggest exporter of processed soy meal for livestock feed and oil for cooking and biofuels, as corn-growing gains. Farmers in the South American nation have been preferring corn lately because it has a wider planting window that mitigates dry conditions brought on by climate change. The trend touched an inflection point for the 2022 crop, with the Buenos Aires Grain Exchange forecasting a bigger harvest of corn than soy at the start of the season for the first time in two decades of record-keeping.

Malaysia Prepares to Allow Foreign Workers to Ease Labor Crunch

Malaysia is planning to permit foreign workers into the country to ease a labor shortage in the plantation sector, according to Human Resources Minister M. Saravanan.

• Following the cabinet’s earlier decision to allow the entry of 32,000 foreign workers in the plantation sector, with special exemptions, the ministry has drafted standard operating procedures, the minister said in a statement dated Sept. 16
  • It has also identified quarantine centers near the Kuala Lumpur International Airport that can accommodate 2,000 workers at a time
• This is in preparation to bring in foreign workers if there is an urgent need, he said
• The country risks losing an estimated 20 billion ringgit ($4.8 billion) a year in income due to the labor crunch, mainly in the palm oil sector: statement

Malaysia Sept. 1-15 Palm Oil Exports to India 188,750 Tons: SGS

• • India imported 188,750 tons; +234.8% m/m
  • EU imported 131,920 tons; -15.8% m/m

Thai Ethanol Producer Plans $99m IPO to Fund Plant Expansion

Ubon Bio Ethanol Group will sell as many as 1.37b new and existing shares at 2.40 baht each, President Dejphon Lertsuwanroj tells virtual press briefing Friday.

• Proceeds will fund capacity expansion of ethanol and tapioca flour plants
• Company will sell 1.17b new shares, while two major shareholders will offer 196m shares in the IPO
• Shares will list on Stock Exchange of Thailand on Sept. 30: Dejphon

U.S. Corn Crops in Drought Area Remain at 30%: USDA

• Corn crops in areas of moderate to intense drought unchanged vs last week at 30%
• Soybean area unchanged at 26%

U.S. Inventories of Hops Rise 2.3% Y/y as of Sept. 1: USDA

Following is a summary of stockpiles of hops held by growers, dealers and brewers in the U.S., according to the USDA’s semi-annual report.

• Total stocks rise to 133m pounds on Sept. 1 vs 130m pounds a year ago
• Stocks held by growers and dealers rose by 6.4% y/y; stocks held by brewers down 8.3% y/y