Global Ag News for Dec 28th

Wheat prices overnight are down 6 in SRW, down 8 1/2 in HRW, down 6 3/4 in HRS; Corn is up 1 1/2; Soybeans up 9 1/2; Soymeal up $0.30; Soyoil up 0.81.

For the week so far wheat prices are down 16 3/4 in SRW, down 23 in HRW, down 14 3/4 in HRS; Corn is up 10 1/2; Soybeans up 40 1/4; Soymeal up $1.08; Soyoil up 2.25.  For the month to date wheat prices are up 10 3/4 in SRW, up 16 1/4 in HRW, up 7 3/4 in HRS; Corn is up 48 3/4; Soybeans up 154 1/2; Soymeal up $70.20; Soyoil up 2.34.

Chinese Ag futures (MAY 22) Soybeans up 78 yuan ; Soymeal up 18; Soyoil up 52; Palm oil up 38; Corn down 9 — Malasyian Palm is up 168. Malaysian palm oil prices overnight were up 168 ringgit (+3.65%) at 4772.

There were no changes in registrations. Registration total: 1,900 SRW Wheat contracts; 39 Oats; 50 Corn; 244 Soybeans; 143 Soyoil; 0 Soymeal; 92 HRW Wheat.

Preliminary changes in futures Open Interest as of December 27 were: SRW Wheat down 183 contracts, HRW Wheat up 504, Corn up 18,204, Soybeans up 1,832, Soymeal down 4,155, Soyoil down 9,954.

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

Argentina Grains & Oilseeds Forecast: Cordoba, Santa Fe, Northern Buenos Aires Forecast: Mostly dry through Wednesday. Isolated showers Thursday-Friday. Temperatures near to above normal through Friday. La Pampa, Southern Buenos Aires Forecast: Mostly dry through Wednesday. Isolated showers Thursday-Friday. Temperatures near to above normal through Friday.

The player sheet for Dec. 27 had funds: net sellers of 3,500 contracts of  SRW wheat, buyers of 9,000 corn, sellers of 12,500 soybeans, buyers of 5,000 soymeal, and  buyers of 4,500 soyoil.

TENDERS

  • CORN SALE: The U.S. Department of Agriculture confirmed private sales of 269,240 tonnes of U.S. corn to unknown destinations for delivery in the 2021/22 marketing year that began Sept. 1.
  • BARLEY TENDER: Jordan’s state grains buyer issued an international tender to purchase 120,000 tonnes of animal feed barley

PENDING TENDERS

  • WHEAT TENDER: Jordan’s state grain buyer issued an international tender to buy 120,000 tonnes of milling wheat, which can be sourced from optional origins
  • WHEAT TENDER: Iraq’s state grains buyer issued a tender to buy a nominal 50,000 tonnes of milling wheat with a limited number of trading companies asked to offer

Malaysia Dec. 1-25 Palm Oil Exports to EU 303,756 Tons: SGS

Malaysia’s palm oil export figures, according to estimates by independent cargo surveyor SGS Malaysia Sdn.

  • EU imported 303,756 tons; -2.2% m/m
  • India imported 242,530 tons; -21.3% m/m
  • Turkey imported 155,460 tons; +150% m/m

Indonesia to Hit 2021 Biodiesel Consumption Target: Agency

Indonesia will probably consume 9.3 million to 9.4 million kiloliters of biodiesel this year, said Eddy Abdurrachman, president director of the Indonesia Oil Palm Plantations Fund Management Agency (BPDPKS).

  • Govt’s target is 9.41m kiloliters for 2021; goal next year is 10.15m
  • Agency may collect 71 trillion rupiah from export levy this year
    • Fund collection as of Dec. 17 stood at 69.7 trillion rupiah
  • About 45 trillion rupiah of export levy may be collected in 2022 as prices of crude palm oil may fall to about $800-$900 CIF Rotterdam
  • Agency has disbursed 51.86 trillion rupiah to subsidize 9.18m kiloliters of biodiesel so far this year
  • Indonesia’s palm oil output seen recovering to 51m tons in 2022 from 49.7m tons this year
  • Exports demand for crude palm oil and other crude products next year seen relatively stagnant at 27.9m tons
  • Domestic consumption of palm oil in 2022 is projected at 11.4 m tons vs. 11.1m tons this year

 Dry weather affects Ukraine winter wheat crops in central regions

Winter wheat crops in Ukraine’s central regions, which make up a third of all sowings in the country, have been affected by poor weather and are mostly in satisfactory condition, APK-Inform agriculture consultancy said on Tuesday.

Farmers were unable to sow all of the planned areas with winter wheat for the 2022 harvest due to severe drought in the main producing regions, planting a total of 6.2 million hectares or 94% of the expected area.

The current satisfactory state of crops, according to APK-Inform, is associated with arid weather conditions in the regions from the beginning of sowing to the development of plants.

“Some farmers reported about possible reseeding of winter crops due to a lack of sprouted plants”, the consultancy said.

In recent years, many Ukrainian regions have been sowing winter crops in dry soil in the hope that a wet and mild winter will allow the plants to grow and give a good harvest. Ukraine harvested a record 32.4 million tonnes of wheat in 2021.

China to Boost Production of Soybeans for Edible Oil in 2022

China must expand production of soybeans as oil plants in 2022 as a “key political task that must be fulfilled,” the agriculture ministry says in a statement, citing a national meeting held Monday in Beijing.

  • The statement doesn’t give specific target for soybean output
  • China seeks to stabilize grain output to ensure good harvest next year
  • Stable vegetable supply will be ensured; pork production will be stabilized

China Set to Give Safety Nod to More Domestic GMO Corn Varieties

China is looking to grant safety approval to more genetically modified (GMO) corn varieties by domestic producers, a move that could lead to commercial planting of these crops in the top corn buyer.

The agriculture ministry is seeking public opinion on the safety approval of three GMO corn strains by China National Tree Seed Corp. and China Agricultural University, Hangzhou Ruifeng Biotech Co., and Beijing Dabeinong Technology Group Co., according to a notice on its website.

Genetically modified organisms are common in many of the world’s top crop producers, with much of the corn and soybeans in the U.S., Brazil and Argentina grown from GMO seeds. Their use is still limited in certain countries due to concerns over the health and environmental impact. Beijing allows imports of GMO crops for processing and they cannot be used as seeds.

The move comes as China’s scooping up global grain supplies to feed its hog herd recovering from African swine fever. Corn imports soared to record levels, sparking a global price rally as investors were also worried about supply.

Beijing has ramped up its focus on food security in the past year, including urging greater self-sufficiency in staple grains. In November, the agriculture ministry laid the groundwork for growing GMO soybeans and grains, such as rice and corn, on Chinese soil for the first time.

The ministry is also looking to approve seven new GMO cotton strains. Members of the public have until Jan. 17 to submit their feedback.

LATAM CROP WEATHER: Rain Relief Seen for South Brazil Early Jan.

South Brazil will remain dry this week, increasing soybean and corn stress, though showers are expected to bring relief to parched crops in the first week of January, Celso Oliveira, a meteorologist at Climatempo in Sao Paulo, says in telephone interview.

  • Rio Grande do Sul and Parana states may get from 20mm to 40mm (0.8 to 1.6 inches) starting Jan. 1
  • Precipitation will aid soy fields in Rio Grande do Sul, where seeding is almost finished, while it will be too late to halt losses in some parts of Parana
  • In Central and North Brazil, heavy showers seen in the next seven days, with accumulation reaching as much as 200mm
  • In Mato Grosso, persistent rain will delay the soybean harvest initially expected to begin in the first week of January

ARGENTINA SOY & CORN

  • Heat and only spotty rain seen in Argentina this week, while some showers are expected Jan. 1 through Jan. 6
  • That rain event will bring some relief before a new dry spell in the second week of January

Uruguay Soy Crop Needs Rain Soon to Avoid Damage: Minister

Uruguay’s developing soy crop is at risk of “important” damage without rain in the coming days, Agriculture Minister Fernando Mattos told reporters in Montevideo.

  • Flowering corn crop needs rain even more urgently than soy
  • Drought could also compromise availability of forage for cattle
  • NOTE: Agriculture Ministry forecasts a 2021-22 soy harvest of approx. 2.2m metric tons, a 29% increase from the 2020-21 harvest

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