Global Ag News for Aug 20.24

TOP HEADLINES

Argentina judge halts deforestation of Chaco forest in rare move

An Argentine federal judge on Monday ordered a three-month suspension of deforestation in northern Chaco province, a rare step to protect one of the world’s woodland ecosystems that is most rapidly being destroyed to make way for farmland.

The unusual though not unprecedented move, announced officially on the public prosecutor’s office website, comes amid an investigation into an alleged public-private corruption scheme involving both business people and local officials profiting from illegal land clearance.

The province of Chaco is part of the American Gran Chaco, the largest forested region in South America after the Amazon and spans between Argentina, Paraguay, Bolivia and Brazil. It has some of the worst deforestation rates in the world.

“The judge ordered the total suspension of clearing in the province of Chaco,” said Enrique Viale, president of the Argentine Association of Environmental Lawyers (AAdeAA), which brought the initial complaint.

“This will ensure that environmental damage is not caused while the investigation is carried out. We will continue until we dismantle this land-clearing mafia and stop deforestation.”

The main economic activities of Chaco province, which has an area of ​​about 100,000 square km (24.7 million acres), are forestry, soy and cattle, cotton production, firewood and tannins.

The Chaco government did not immediately respond to a request for comment.

According to data from NGO Fundación Vida Silvestre (Forest Life Foundation), despite Argentina having a Forest Protection Law, the Gran Chaco has lost 30% of its forests, with 76% of the deforestation carried out illegally between 2007 and 2021.

 

FUTURES & WEATHER

Wheat prices overnight are up 1 in SRW, up 1 in HRW, down 1 1/2 in HRS; Corn is down 1/4; Soybeans down 1 3/4; Soymeal down $0.70; Soyoil down 0.26.

For the week so far wheat prices are up 3/4 in SRW, up 2 1/2 in HRW, down 7 in HRS; Corn is up 7 1/2; Soybeans up 17 1/4; Soymeal up $7.70; Soyoil up 0.16.

For the month to date wheat prices are up 1 1/4 in SRW, down 8 1/4 in HRW, up 1 in HRS; Corn is up 1/4; Soybeans down 48 1/4; Soymeal down $5.90; Soyoil down 3.50.

Year-To-Date nearby futures are down 15.7% in SRW, down 15.7% in HRW, down 19.0% in HRS; Corn is down 19.7%; Soybeans down 26.2%; Soymeal down 19.2%; Soyoil down 16.1%.

Chinese Ag futures (NOV 24) Soybeans down 27 yuan; Soymeal up 10; Soyoil up 36; Palm oil up 62; Corn up 14 — Malaysian Palm is down 7.

Malaysian palm oil prices overnight were down 7 ringgit (-0.19%) at 3714.

There were changes in registrations (-1 Soymeal). Registration total: 424 SRW Wheat contracts; 6 Oats; 15 Corn; 10 Soybeans; 806 Soyoil; 0 Soymeal; 0 HRW Wheat.

Preliminary changes in futures Open Interest as of August 19 were: SRW Wheat down 949 contracts, HRW Wheat down 757, Corn down 18,236, Soybeans down 409, Soymeal up 2,115, Soyoil up 2,170.

 

Northern Plains: Isolated to scattered showers through Tuesday. Temperatures near to below normal through Saturday, near normal east and above normal west Sunday-Tuesday. Outlook: Isolated showers Wednesday-Sunday. Temperatures near to above normal Wednesday-Thursday, above normal Friday-Sunday.

Central/Southern Plains: Isolated showers through Friday, mostly north. Temperatures near to below normal north and above normal south through Wednesday, near to above normal Thursday, above normal Friday. Outlook: Isolated showers Saturday-Wednesday. Temperatures above normal Saturday-Sunday, near to above normal Monday-Wednesday.

Midwest: West: Isolated showers Tuesday. Mostly dry Wednesday. Isolated showers Thursday-Friday. Temperatures near to below normal through Thursday, near to above normal Friday. East: Mostly dry through Friday. Temperatures below normal through Thursday, near normal Friday. Outlook: Isolated to scattered showers Saturday-Wednesday. Temperatures above normal Saturday-Monday, near to above normal Tuesday-Wednesday.

The player sheet for Aug. 19 had funds: net sellers of 500 contracts of SRW wheat, buyers of 8,000 corn, sellers of 6,000 soybeans, buyers of 3,000 soymeal, and buyers of 2,000 soyoil.

 

TENDERS

• SOYBEAN SALES: Exporters sold 332,000 metric tons of U.S. soybeans to China and 110,000 metric tons of U.S. soy to unknown destinations, all for 2024/2025 delivery, the U.S. Department of Agriculture said.
• CORN PURCHASE: South Korea’s Major Feedmill Group (MFG) purchased an estimated 69,000 metric tons of animal feed corn in a deal last week
• WHEAT BUYING UPDATE: Egypt remains confident of securing its target of around 3.8 million metric tonnes of imported wheat by the end of 2024, through a combination of tenders, direct purchases and government-to-government agreements, a government minister said.

PENDING TENDERS

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

 

 

 

 

TODAY

US Inspected 1.166m Tons of Corn for Export, 398k of Soybeans

In week ending Aug. 15, according to the USDA’s weekly inspections report.

• Wheat: 348k tons vs 667k the previous wk, 311k a yr ago
• Corn: 1,166k tons vs 986k the previous wk, 511k a yr ago
• Soybeans: 398k tons vs 350k the previous wk, 320k a yr ago

 

US Corn, Soybean, Wheat Inspections by Country: Aug. 15

Following is a summary of USDA inspections for week ending Aug. 15 of corn, soybeans and wheat for export, from the Grain Inspection, Packers and Stockyards Administration, known as GIPSA.

• Soybeans for Germany-bound shipments made up 131k tons of the 398k total inspected
• Mexico was the top destination for corn inspections, Indonesia led in wheat

 

CROP TOUR: Ohio Corn, Soybeans Seen Just Below 2023 Numbers

Corn yields in Ohio are estimated at 183.29 bu/acre based on 115 fields sampled, just below 183.94 bu/acre seen last year, according to Pro Farmer Crop Tour data Monday.

• Estimate up from three-year corn yield average of 181.06 bu/acre
  • Estimate is also below US Department of Agriculture forecast for Ohio of 188 from Aug. 12
• Ohio soybeans are seen averaging 1,229.93 pods in a 3-by-3-foot square, based on 115 samples; that’s below year-ago figure of 1,252.93 and above the three-year average of 1,193.31 pods, according to tour data
• NOTE: Tour, which runs through Thursday, does not project soybean yields

 

CROP TOUR: S. Dakota Corn Yields Seen Below 2023’s; Soy Seen Up

Corn yields in South Dakota averaged 156.5 bushels per acre, according to 77 samples taken Monday by participants on the Pro Farmer Midwest Crop Tour.

• That compares with the 2023 South Dakota tour average of 157.4 bu/acre; three-year avg of 142.4 bu/acre
  • Some crops in South Dakota were affected by excessive rain, which washed fertilizers away and left patches of exposed land
  • Crops were also damaged by hail
  • Soybean pod count in 3-by-3-foot square averaged 1,026 pods, according to 76 samples
  • That’s up from 1,013 pods last year and the 960.4 three-year avg
• NOTE: The crop tour does not project soybean yields
• NOTE: USDA on Aug. 12 forecast South Dakota corn yields at 162 bu/acre, up 10 bushels from last year; soybean yields seen at 47 bu/acre, up three bushels from last year

 

Brazil C-S Winter Corn Harvest 95.3% Done as of Aug. 16: Safras

That compares with 81.1% a year earlier, and a five-year average of 65.7%, according to a report from consulting firm Safras & Mercado.

Harvest is 92.2% completed in Parana area, 84.1% in Sao Paulo, 99.4% in Mato Grosso do Sul, 93.9% in Goias, 99.7% in Mato Grosso and 64.8% in Minas Gerais

 

China July soy imports from US jump threefold, customs data shows

China’s soybean imports from the U.S. jumped threefold in July from a year earlier, as the U.S. growing season picks up, but Brazilian supplies still took the bulk of the market share, data from the General Administration of Customs showed on Tuesday.

The world’s biggest soybean buyer imported 475,392 metric tons of the oilseed from the United States last month, compared with 142,129 metric tons a year earlier, according to the data.

Imports from larger producer Brazil eased 1.15% to 9.12 million tons.

The South American beans made up nearly all of 9.85 million tons of total soybean imports into China in July.

For January-July, China’s imports from Brazil totaled 43.55 million tons, a 12% increase from the same period last year.

Total arrivals from the U.S. in the seven months of the year came to 12.63 million tons, down 25% on the prior year, the data showed.

Crushers in China stepped up buying in recent months after lower global prices helped cut import costs, leading to overflowing inventories a time when animal feed demand remains subdued.

China’s tepid demand comes amid forecasts for a bumper U.S. soy crop and good growing weather in the U.S Midwest, which have pushed soy prices near four-year lows.

The U.S. Department of Agriculture raised its estimate for the 2024/25 soybean crop to a record 4.589 billion bushels from 4.469 previously.

 

Ammonia Prices Gain as Canadian Rail Strike Looms

Ammonia moved up again in the Midwest, fueled in part by fears of a looming rail strike in Canada. Terminal prices in the Corn Belt firmed to $535-$560 a short ton (st) from last week’s $520-$550, while offers in Oklahoma and Kansas climbed to $505-$515 from $490-$500. New business pushed ammonia prices up in northwest Europe as well, to $550-$560 a metric ton (mt) cost-and-freight vs. the prior $510-$550 amid bullish gas prices. The announcement of a new tender in India saw urea prices gain $10-$15/mt in Brazil, but other international markets were under pressure, with declines reported in Egypt and the Black Sea region.

New Orleans (NOLA) urea, phosphates and potash were generally flat from last week, though monoammonium phosphate (MAP) was up $10/st in the western US and C$25-$30/mt in western Canada.

 

 

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