Global Ag News for July 12th

TODAY  —- EXPORT INSPECTIONS, CROP PROGRESS, USDA S&D

Wheat prices overnight are up 3/4 in SRW, down 1/2 in HRW, up 11 in HRS; Corn is up 6; Soybeans up 4 3/4; Soymeal down $0.04; Soyoil up 0.54.

For the month to date wheat prices are down 63 3/4 in SRW, down 65 1/2 in HRW, down 24 1/2 in HRS; Corn is down 65 1/2; Soybeans down 65; Soymeal down $23.20; Soyoil down 1.28.

Chinese Ag futures (SEP 21) Soybeans up 21 yuan ; Soymeal unchanged; Soyoil up 144; Palm oil up 182; Corn down 5 — Malasyian Palm is down 24. Markets finished last week with wheat prices down 37 in SRW, down 25 3/4 in HRW, down 13 1/2 in HRS; Corn is down 56 3/4; Soybeans down 65; Soymeal down $2.98; Soyoil down 0.80.

Malaysian palm oil prices overnight were down 24 ringgit (-0.62%) at 3868.

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

The player sheet for 7/9 had funds: net sellers of 2,000 contracts of SRW wheat, sellers of 8,000 corn, sellers of 7,000 soybeans, sellers of 3,000 soymeal, and  buyers of 5,000 soyoil.

Preliminary changes in futures Open Interest as of July 9 were: SRW Wheat down 323 contracts, HRW Wheat down 942, Corn up 5,086, Soybeans up 4,094, Soymeal up 338, Soyoil up 102.

There were changes in registrations (39 HRW Wheat). Registration total: 20 SRW Wheat contracts; 0 Oats; 0 Corn; 13 Soybeans; 388 Soyoil; 407 Soymeal; 1,288 HRW Wheat.

TENDERS

• SOYMEAL SALE: The U.S. Department of Agriculture confirmed private sales of 228,600 tonnes of U.S. soybeans to Mexico for shipment in the 2021/22 marketing year.
• WHEAT SALE: Iranian state agency the Government Trading Corporation (GTC) is believed to have purchased around 130,000 tonnes of milling wheat in a tender for 60,000 tonnes which closed on Wednesday
• WHEAT SALE: Algeria’s state grains agency OAIC has purchased a small volume of optional-origin milling wheat in an international tender which closed on Thursday which sought shipment to two ports only
• WHEAT SALE: Saudi Grains Organization bought 505,000 tons of wheat for delivery in October.

PENDING TENDERS

• WHEAT TENDER: Importers in the Philippines tendered to purchase up to 200,000 tonnes of animal feed wheat and milling wheat
• WHEAT TENDER: Saudi Arabia’s main wheat-buying agency, the Saudi Grains Organization (SAGO), on Thursday issued an international tender to purchase about 360,000 tonnes of wheat, it said in confirmation of earlier trade reports. The tender deadline is Friday July 9, SAGO said. Traders said results are expected on Monday July 12.
• WHEAT TENDER: Turkey’s state grain board TMO has issued an international tender to purchase a total of about 395,000 tonnes of milling wheat
• FEED WHEAT, BARLEY TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said on Wednesday that it will seek 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by Oct. 31 and arrive in Japan by Dec. 23, via a simultaneous buy and sell (SBS) auction that will be held on July 14.
• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat
• WHEAT TENDER: Bangladesh’s state grains buyer issued another international tender to purchase 50,000 tonnes of milling wheat
• WHEAT TENDER: The Ethiopian government issued an international tender to buy about 400,000 tonnes of optional-origin milling wheat
• WHEAT TENDER: A government agency in Pakistan has issued an international tender to purchase and import 500,000 tonnes of wheat
• CORN TENDER: The Korea Feed Association (KFA) has issued an international tender to purchase up to 69,000 tonnes of corn to be sourced from optional origins
• CORN TENDER: South Korean feedmaker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 138,000 tonnes of animal feed corn to be sourced from optional origins

U.S. pledges $500 mln to increase meat processing capacity

The U.S. Department of Agriculture said on Friday it plans to invest $500 million to expand the country’s meat and poultry processing capacity, after the COVID-19 pandemic shut slaughterhouses last year.

The money, to come from American Rescue Plan funds, will be awarded to processors in grants and loans to make the supply chain more resilient and increase competition in the sector, USDA Secretary Tom Vilsack said in a statement.

President Joe Biden signed a sweeping executive order to promote more competition in the U.S. economy, urging agencies to crack down on anti-competitive practices in sectors from agriculture to drugs and labor.

France Sees 2021 Soft-Wheat Harvest Rising 27% to 37.1m Tons

That would put the crop 11% above the prior five-year average, France’s agriculture ministry said Monday in a report on its website.

• Soft-wheat yields are estimated at 7.51 tons/hectare, versus 6.85 tons/hectare last year
• Grain “yields are increasing sharply, despite fears related to frost in April and heavy rains,” the ministry said
• Durum-wheat harvest is seen at 1.62m tons
  • That’s up 24% y/y, but 4.5% below the five-year average
• Barley harvest is seen at 11.3m tons
  • That’s up 8.4% y/y and 2.4% below the five-year average
• Of the total, 7.94m tons is winter barley
• Rapeseed harvest is seen just below 3m tons
  • That’s down 9% y/y and 31% below the five-year average
• The country’s rapeseed output has topped 3m tons since 2002, the ministry says
• Outlook for corn plantings is cut to 1.44m hectares, versus June estimate of 1.5m

Brazil Soybean Sales Slow; Winter Corn Crop Estimate Cut: Safras

Brazil 2020/21 soybean sales at 79.2% as of July 9, compared with 92.9% a year ago, consulting firm Safras & Mercado says in emailed report.

• 5-year average is 78.2%
• Advance sales for 2021/22 season are at 21.5%; compares with 39.8% a year earlier and a 5-year average of 17.6%
• Center-South winter corn crop estimate cut to 56.75m tons, from 61.59m tons projected in May
• Compares with 73.48m tons in last season

SOYBEAN/CEPEA: Low stocks in Brazil keep prices high, despite international decreases

Prices of soybean and byproducts moved up in Brazil this week, despite international price drops. Low domestic inventories and dollar valuation pushed up quotes. As a result, sellers were more active in the domestic market, pushing up liquidity.

Malaysia June Palm Stockpiles +2.8% M/m to 1.61M Tons: MPOB

Palm oil stockpiles in Malaysia, the world’s second-largest producer, rose 2.8% to 1.61 million tons in June from a month earlier, Malaysian Palm Oil Board says in statement today.

• Palm oil exports +11.8% m/m to 1.42m tons
• Imports +27.1% m/m to 113,126 tons
• Crude palm oil production +2.2% m/m to 1.61m tons

Malaysia July 1-10 Palm Oil Exports +3.93% M/m: Intertek

Malaysia’s palm oil exports rose 3.93% m/m during July 1-10, according to Intertek Testing Services.

Indonesia’s June Palm Oil Exports Drop 49% M/m: Intertek

Shipments fell to 1.5m tons in June from 2.96m tons in May, according to cargo surveyor Intertek Testing Services in an emailed statement.

• June shipments by grade:
  • 78,275 tons of crude palm oil
  • 519,850 tons of RBD palm olein
  • 411,773 tons of RBD palm oil
• June versus May sales by destination:
  • European Union at 518,301 tons vs. 744,950 tons
  • India and subcontinent at 284,327 tons vs. 626,422 tons
  • China at 258,138 tons vs. 470,113 tons

China raises forecast of 2020/21 edible oils imports

China raised its forecast on imports of edible oils in 2020/21 marketing year, on increase of palm oil and sunflower oil shipments, the country’s agriculture ministry said on Monday.

China’s 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month’s forecast, the Ministry of Agriculture and Rural Affairs said in its monthly crop report.

Estimates on output, planting acreage and imports of corn, soybeans and cotton in the 2021/22 year remain unchanged from a month ago, according to the ministry.

Russia’s grain export estimates for June by Sovecon consultancy

Russia’s June exports of wheat, barley and maize (corn) are estimated at 2.45 million tonnes, up from 905,000 tonnes in May, the Sovecon agriculture consultancy said.

India’s summer crop planting lags as monsoon rains taper off

Indian farmers have planted 49.9 million hectares (123 million acres) with summer crops, down 10.43% from a year earlier, according to the Ministry of Agriculture & Farmers’ Welfare, as monsoon rains taper off after a strong start last month.

• The area planted with cotton was at 8.6 million hectares versus 10.5 million hectares the prior year.
• Planting of overall oilseeds, including soybean – the main summer oilseed crop – was at 11.2 million hectares, down from 12.6 million hectares the previous year.
  • Soybean sowing was at 8.2 million hectares against 9.2 million hectares last year. India is the world’s biggest buyer of cooking oils.
• Sugarcane sowing in the world’s second biggest sugar producer was almost unchanged at 5.3 million hectares.
• The figures are provisional and subject to revision as the June-September monsoon season progresses.

India Cumulative Monsoon Rainfall 8% Below Normal as of July 11

India has so far received 242 millimeters of rains during the current monsoon season, which runs from June through September, compared with a normal of 261.8 millimeters, according to data published by the India Meteorological Department on July 11.

Soufflet Starts Initiative to Aid Waning French Rapeseed Sector

French agribusiness Soufflet Group is launching an initiative to support local rapeseed farmers, after several years of dwindling acreage for the oilseed, it said in a statement.

• If farmers comply with certain growing specifications, Soufflet will offset some of the risk in case crops emerge poorly or face vegetation problems during autumn planting through winter
  • Company will cover part of the farmers’ investment, ranging from EU90-180 ($107-$213) per hectare; offer starts with 2021 sowing period
• NOTE: Paris rapeseed futures reached an all-time high earlier this year amid tight supplies