Global Ag News for June 11th

TODAY—-  COMMITMENTS OF TRADERS

Wheat prices overnight are down 3 1/2 in SRW, down 4 1/2 in HRW, down 8 1/4 in HRS; Corn is down 8 3/4; Soybeans down 9 3/4; Soymeal down $0.11; Soyoil down 0.86.

For the week so far wheat prices are down 6 1/4 in SRW, down 3/4 in HRW, down 42 1/4 in HRS; Corn is up 16 1/2; Soybeans up 14 1/4; Soymeal down $0.17; Soyoil up 1.51.

For the month to date wheat prices are up 19 in SRW, up 22 1/2 in HRW, up 40 in HRS; Corn is up 62 1/4; Soybeans up 77; Soymeal down $1.00; Soyoil up 7.02.

Chinese Ag futures (SEP 21) Soybeans down 32 yuan ; Soymeal up 23; Soyoil down 18; Palm oil down 90; Corn up 25 — Malasyian Palm is down 203. Malaysian palm oil prices overnight were down 203 ringgit (-5.28%) at 3641 dropping to the lowest intraday level since April 20 and headed for its longest daily losing streak in almost five months, as investors fretted about weaker demand from top importer India.

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

The player sheet for 6/10 had funds: net buyers of 500 contracts of SRW wheat, buyers of 10,000 corn, sellers of 6,500 soybeans, sellers of 4,000 soymeal, and  sellers of 2,000 soyoil.

Preliminary changes in futures Open Interest as of June 10 were: SRW Wheat up 1,060 contracts, HRW Wheat up 55, Corn up 17,499, Soybeans up 1,419, Soymeal up 4,573, Soyoil up 8,771.

There were no changes in registrations. Registration total: 20 SRW Wheat contracts; 16 Oats; 0 Corn; 13 Soybeans; 868 Soyoil; 442 Soymeal; 1,249 HRW Wheat.

TENDERS

• WHEAT PURCHASE: Tunisia’s state grains agency is believed to have reached an agreement to purchase around 50,000 tonnes of soft milling wheat in an international tender which closed on Thursday
• WHEAT PURCHASE: Japan’s Ministry of Agriculture bought 181,355 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.
• FEED WHEAT PURCHASE: Importers in the Philippines are believed to have bought about 50,000 tonnes of animal feed wheat in a tender which closed on Thursday.

PENDING TENDERS

• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat.
• WHEAT TENDER: The Ethiopian government issued an international tender to buy some 400,000 tonnes of milling wheat.
• WHEAT BRAN TENDER: Jordan’s state grains buyer issued an international tender to purchase 20,000 tonnes of wheat bran.
• FEED WHEAT AND BARLEY TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) said it will seek 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by Sept. 30 and arrive in Japan by Nov. 25, via a simultaneous buy and sell (SBS) auction that will be held on June 16.
• WHEAT TENDER: Jordan’s state grain buyer issued international tenders to buy a total 120,000 tonnes of milling wheat which can be sourced from optional origins

Argentine Soy, Corn, Wheat Estimates June 10: Exchange

The Buenos Aires Grain Exchange releases weekly report on website.

• 2020-21 corn production est. raised by 2m tons to 48m tons
• Corn harvest advances to 37.8% complete vs 34.1%
• The following table compares most current data to previous week and last year’s crop:

 

U.S. Barge Shipments of Grain Rose 30% Last Week: USDA

Shipments along the Mississippi, Illinois, Ohio and Arkansas rivers increased in the week ending June 5 from the previous week, according to the USDA’s weekly grain transportation report.

• Barge shipments of corn rose 33% from the previous week
• Soybean shipments up 30% w/w

 Mexico stalling GMO corn permits ahead of ban, says top farm lobby

Mexico is holding up import permits for GMO corn, the head of the country’s main farm lobby told Reuters, saying the government intended to apply a GMO ban to the grain used in animal feed despite contrasting comments by a top U.S. official.

In an interview, National Farm Council President Juan Cortina said among hundreds of agricultural product import permits awaiting a resolution are at least eight for genetically-modified corn even though the ban is not set to go into effect for three years.

Brazil’s Conab Cut Corn Crop Est. By 9.4% to 96.4m Ton

(Bloomberg) — Lower production is due to a reduction in outlook for the second corn crop as unfavorable weather conditions cut yields, the state-run agriculture agency Conab said in its ninth report for the 2020-21 crop.

• New estimate is above the average of 94m tons in a Bloomberg survey
• That’s compared with 102.6m tons in 2019-20
• Second corn crop harvest is seen at 70m tons versus 79.8m tons estimated last month
• Conab kept unchanged domestic corn consumption at 72.1m tons versus 69m in previous season
  • Raises corn import outlook to 2.3m tons
  • Exports outlook cut to 29.5m tons versus 35m tons in May est.
  • Ending stocks seen falling to 7.6m tons versus 10.9m tons est. in May
• Soybean production was slightly raised to 135.9m tons versus 135.4m tons in May est.
  • Production seen rising 8.8% from 124.8m tons past season
• Cotton output was cut by 4.1% to 2.34m tons versus May forecast and 22% versus 3m tons harvested in 2019-20

French wheat crop rating improves – Reuters

PARIS, June 11 (Reuters) – An estimated 81% of French soft wheat was in good or excellent condition in the week to June 7, up from 80% the previous week, farm office FranceAgriMer said on Friday.

That compared with 56% in the corresponding week last year, it said in a cereal crop report.

U.S. Corn Crops in Drought Area Rise to 35% From 24%: USDA

The following table shows the percent of U.S. agricultural production within an area that experienced drought for the week ending June 8, according to the USDA’s weekly drought report.

• Corn area experiencing moderate to intense drought rose by 11 percentage points in the week
• Soybean area up to 31% vs 23%
• Cotton area fell to 14% vs 23%

 Saskatchewan Seeding Nearly Complete; More Moisture Needed

Farmers in one of Canada’s key agricultural provinces have planted 99% of this season’s crops, sightly ahead of average, the Saskatchewan government said in a weekly report Thursday.

• Seeding is ahead of 5-year average of 97%
• Topsoil moisture conditions have deteriorated despite “good amounts of rain” last weekend
  • There is no surplus cropland topsoil moisture, with 56% rated adequate, 40% short and 4% very short
  • A thunderstorm brought hail
• 51% of spring cereals and 42% of canola are emerging
• Some farmers are reseeding due to flea beetle and cutworm damage

Brazil Center-South Sugar Output +2.6% 2nd Half of May: Unica

Millers produced 2.62m tons of sugar in 2nd Half of May vs 2.56m tons in same period last year, industry group Unica says in report posted on its website.

• Ethanol output at 1.99b liters vs 1.82b liters a year earlier
• Output compares with 2.52m tons avg. estimate in a Bloomberg survey

Indonesia’s May Palm Oil Exports Rise 8.2% M/m: Intertek

Exports rose to 2.96m tons in May from 2.73m tons in April, according to cargo surveyor Intertek Testing Services in an emailed statement.

• May shipments by grade:
  • 262,675 tons of crude palm oil
  • 1,088,310 tons of RBD palm olein
  • 762,320 tons of RBD palm oil
• May versus April sales by destination:
  • European Union at 744,950 tons vs 509,353 tons
  • India and subcontinent at 626,422 tons vs 717,414 tons
  • China at 470,113 tons vs 534,922 tons

Sinograin Sells All Ukrainian Corn on Offer From State Reserves

China’s state grains stockpiler Sinograin has sold all 11,058 tons of Ukrainian corn on offer at an auction on Friday, according to grains trading platform liangdawang.com.

• All transactions were done at a price of 2,820-2,830 yuan a ton, an increase of 70-80 yuan from the starting bid of 2,750 yuan
  • Price excludes 30 yuan/ton fee to get corn out of storage
• More volumes from state reserves may be offered at later auctions
• Sinograin hasn’t published the result on its website

Russia Raises Wheat Export Tax to $33.30/Ton for Next Week

Russia’s wheat export customs duty will rise to $33.30/ton from $29.40/ton currently, the Agriculture Ministry said Friday on its website.

• NOTE: The rates are set weekly and take effect three working days after publication

UPCOMING TIGHT INVENTORY TO SUPPORT CPO PRICE

Expectations of a tight inventory level in the plantation sector due to slower production growth in the upcoming months could lend support to the crude palm oil (CPO) price, which can average at RM3,000 per tonne level this year, MIDF Research said.

It said the CPO futures have rallied to an over 10-year high to above RM4,000 per tonne, amid strong market sentiment and the rally in the soybean oil market.

Meanwhile, the research house projects China’s export demand growth to continue after the country approved new standards for premium palm oil.

Malaysia June 1-10 Palm Oil Exports to EU 118,199 Tons: SGS

• EU imported 118,199 tons; +8.1% m/m
• India imported 99,625 tons; +38% m/m
• China imported 74,665 tons; +2% m/m

Australia Will Ship Canola to Pakistan for First Time in Years

Australia will resume canola exports to Pakistan for the first time since 2016-17, the Australian Department of Agriculture, Water and the Environment said in a statement Friday.

• Australian exporters of chickpea, lentil and wheat will have improved market access into Pakistan following talks between the two nations
• Pakistan has approved methyl bromide fumigation of chickpeas and lentils, and phosphine fumigation of wheat, which will reduce costs and give greater flexibility to exporters
• This brings Pakistan in alignment with Australia, India and Bangladesh for preferred rates of fumigation, allowing for easier transshipment across the region

China’s Buying So Much Corn That Its Ports Are Getting Clogged

• Ships have been waiting for as long as a month to unload
• Country is buying record amount of the grain for hog feed
• China’s embarked on a record corn-buying spree this year and some vessels have been delayed for as long as a month outside southern ports because of congestion, incurring hefty demurrage fees.
• At least two ships laden with U.S. corn had been waiting for weeks before eventually moving to berth on Thursday, according to Bloomberg vessel-tracking data.
  • The Priscilla carrying 71,400 tons was anchored off Zhanjiang port in Guangdong province since May 11
  • Krini, with 75,100 tons, was waiting since May 16 near Huangpu port in the same province.
• Feed mills are not the only buyers. The government has been shipping in corn from Ukraine and the U.S. to replenish state reserves depleted after years of sales.

French Wheat Ratings Rise, Best for This Time Since ‘15: AgriMer

The amount of France’s soft-wheat crop rated in good or very good condition rose to 81% in the week to June 7, the highest for this time in six years, FranceAgriMer data showed on Friday.

• Rain and cool conditions across Europe during May erased concerns about April dryness, the USDA said in a report Thursday
• More beneficial showers are expected through June 20, according to Commodity Weather Group