Global Ag News for Jan 12 22

 TODAY – EIA WEEKLY PETROLEUM STATUS REPORT

Wheat prices overnight are down 3 in SRW, down 2 in HRW, down 1 3/4 in HRS; Corn is down 1; Soybeans down 4 1/2; Soymeal down $0.25; Soyoil up 0.07.

For the week so far wheat prices are up 8 3/4 in SRW, up 14 3/4 in HRW, up 3 1/4 in HRS; Corn is down 6 3/4; Soybeans down 28 1/4; Soymeal down $1.45; Soyoil up 0.15. For the month to date wheat prices are down 3 1/2 in SRW, down 11 3/4 in HRW, down 55 1/2 in HRS; Corn is up 6 3/4; Soybeans up 42 3/4; Soymeal up $11.50; Soyoil up 2.41.

Chinese Ag futures (MAY 22) Soybeans down 32 yuan ; Soymeal down 11; Soyoil up 6; Palm oil up 64; Corn up 22 — Malasyian Palm is down 29. Malaysian palm oil prices overnight were down 29 ringgit (-0.57%) at 5040.

There were changes in registrations (-29 Soybeans). Registration total: 1,900 SRW Wheat contracts; 25 Oats; 50 Corn; 371 Soybeans; 143 Soyoil; 0 Soymeal; 92 HRW Wheat.

Preliminary changes in futures Open Interest as of January 11 were: SRW Wheat down 1,468 contracts, HRW Wheat down 2,788, Corn down 2,423, Soybeans up 3,076, Soymeal up 2,977, Soyoil down 7,642.

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

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

The player sheet for Jan. 11 had funds: net buyers of 5,000 contracts of  SRW wheat, buyers of 1,000 corn, buyers of 1,000 soybeans, sellers of 1,000 soymeal, and  buyers of 4,500 soyoil.

TENDERS

  • CORN SALE: The U.S. Department of Agriculture confirmed private sales of 100,000 of U.S. soybeans to Mexico for delivery in the 2021/22 marketing year.
  • CORN SALE: The Korea Feed Association (KFA) Busan section purchased some 129,000 tonnes of animal feed corn in an international tender which closed on Tuesday
  • CORN SALE: Leading South Korean animal feedmaker Nonghyup Feed Inc (NOFI) is believed to have purchased around 130,000 tonnes of animal feed corn in an international tender which closed on Tuesday
  • FEED WHEAT SALE: South Korea’s Major Feedmill Group (MFG) purchased about 55,000 tonnes of animal feed wheat expected to be sourced from Australia in a private deal without an international tender being issued
  • WHEAT TENDER: Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) is seeking to buy a total of 107,555 tonnes of food-quality wheat from the United States and Canada in regular tenders that will close on Thursday.
  • WHEAT TENDER: Turkey’s state grain board TMO has issued an international tender to purchase about 335,000 tonnes of milling wheat
  • WHEAT TENDER: Algeria’s state grains agency OAIC has issued an international tender to buy milling wheat to be sourced from optional origins
  • WHEAT TENDER: Iranian state agency the Government Trading Corporation (GTC) has issued an international tender to purchase about 60,000 tonnes of milling wheat

PENDING TENDERS

  • WHEAT AND BARLEY: 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 Feb. 15 and arrive in Japan by March 17, via a simultaneous buy and sell (SBS) auction that will be held on Jan. 19.
  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice with import using land transport by railway
  • WHEAT TENDER: Iraq’s state grains buyer has extended the deadline for validity of price offers in tender to buy a nominal 50,000 tonnes of milling wheat in which only a limited number of trading companies were asked to participate
  • RICE TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of rice, traders said. The deadline for submission of price offers is Jan. 16.
  • 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

ETHANOL: U.S. Weekly Production Survey Before EIA Report

Output and stockpile projections for the week ending Jan. 7 are based on eight analyst estimates compiled by Bloomberg.

  • Production seen lower than last week at 1.041m b/d
  • Stockpile avg est. 21.566m bbl vs 21.359m a week ago
    • Would be the highest since August

Canada Canola Output Seen Rising 67% in Rebound From Drought

Output in Canada may rise to as much as 21m tons in 2022 as Prairies recover from last year’s drought amid strong demand for the oilseed, Marlene Boersch, owner of Winnipeg-based Mercantile Consulting Venture Inc., said Tuesday at a virtual farm conference.

  • Canada output dropped 35% in 2021 to 12.6m tons, lowest since 2007, because of drought in Western Canada
  • Parts of the Prairies may experience lingering dryness and production estimates assume average yields
  • NOTE: Canada is the world’s top canola producer
  • Domestic crush plants will try to operate as efficiently as they can but may need to shut down if supplies are “really really tight,” Boersch said
    • “There is very little question we will run out of canola late in the crop year”
  • NOTE: Canola futures touched all-time high on Jan. 7

EU Soft-Wheat Exports Jump 6.5% Y/y; China Rises to No. 3 Market

Soft-wheat shipments during the season that began July 1 reached 15.1m tons as of Jan. 9, versus 14.2m tons in a similar period a year earlier, the European Commission said Tuesday on its website.

  • NOTE: Figures for the prior season include trade for the U.K. until Dec. 31, 2020, when the country departed the EU customs union
  • Top soft-wheat destinations are Algeria (2.51m tons), Egypt (1.39m tons) and China (1.23m tons)
    • As of last week, Nigeria was the third-largest market
  • EU barley exports at 4.86m tons, versus 3.96m tons a year earlier
    • China is the top market at 2m tons
  • EU corn imports at 7.72m tons, against 9.2m tons a year earlier
  • NOTE: As of last week, trade figures for France had lagged for much of the season
    • Tuesday’s report didn’t indicate any delays

 China Cuts Corn Demand Estimates Due to Poor Hog Margins: CASDE

China cuts 2021-22 estimates for corn use in animal feed by 1m to 186m tons as weak hog producer margins curb demand and as imports of substitutes like sorghum and barley climb, according to China Agricultural Supply and Demand Estimates.

  • Corn demand for industrial use is reduced by 2m tons to 80m due to high corn prices
  • Domestic soybean prices to be supported by lower production in northeastern regions, but may face challenge from sluggish buying
  • CASDE maintains 2021-22 supply and demand forecasts for soybeans, edible oil and sugar

India’s Palm Oil Imports Rise 4.9% M/m in December, Group Says

Palm oil purchases by the world’s biggest buyer increased to 565,943 tons in December from 539,639 tons a month earlier, according to the Solvent Extractors’ Association of India.

  • India bought 770,392 tons in December 2020
  • Soybean oil imports 392,471 tons last month vs 474,160 tons in November
    • Sunflower oil purchases 258,449 tons vs 125,024 tons
    • Total vegetable oil imports, including non-edible oil, at 1.23m tons vs 1.17m tons
  • Edible oil stockpiles at ports and in the pipeline were 1.72m tons on Jan. 1, compared with 1.65m tons at the start of December

Russian Wheat-Exports So Far This Season Decline 18% Y/y: Agency

Russian wheat shipments for the 2021-22 season amounted to 21.6m tons as of Dec. 30, down 18% from a year earlier, the Federal Center of Quality and Safety Assurance for Grain and Grain Products said on its website, citing inspections before exports.

  • That means wheat exports totaled about 500k tons in the week to Dec. 30, compared with 700k tons a week earlier
  • Exports of all grains are at 29.9m tons so far this season
    • Barley exports declined 33% y/y
    • Corn exports rose 11%
  • NOTE: Data are preliminary and include exports to the Eurasian Economic Union, which is a customs union of countries that include

AgriMer Cuts French Wheat Export Est.; Reserves at Six-Year High

French soft-wheat stockpiles at the end of the 2021-22 season are now seen at 3.65m tons, crops office FranceAgriMer said in a reportWednesday.

  • That’s up from a December estimate for 3.51m tons and remains the highest in at least six seasons
  • Estimate for exports outside the EU were cut to 9m tons, from 9.2m tons
  • Total exports seen at 16.8m tons, versus previous outlook of 17.1m tons
  • NOTE: Paris milling-wheat futures are down about 11% from a November peak

BARLEY

  • Export estimate little changed at 5.97m tons
  • Outlook for end-of-season stockpiles also steady at 1.42m tons

CORN

  • Stockpiles seen at 1.87m tons, versus previous outlook of 1.85m tons

ADM signs CO2 pipeline deal to capture, store ethanol plant emissions

Archer-Daniels-Midland Co ADM.N said Tuesday it had signed a letter of intent with Wolf Carbon Solutions to build a pipeline that would capture and transport carbon dioxide produced at ADM’s ethanol facilities at Clinton and Cedar Rapids, Iowa.

The pipeline is the latest move by agriculture and energy companies to reduce emissions of planet-warming carbon and would test carbon capture technology, a potentially powerful tool to fight climate change that is relatively new and unproven.

ADM said the 350-mile steel pipeline, capable of transporting 12 million tonnes of carbon dioxide per year, would support its decarbonization goals.

The pipeline will be built, owned and operated by Wolf Carbon Solutions and the project does not require any capital investment from ADM, said ADM spokeswoman Jackie Anderson.

Rather than being released into the atmosphere, the carbon would be stored underground at a sequestration site in Decatur, Illinois, where ADM has been burying emissions for more than a decade. Two ADM-led projects have stored around 3.5 million tonnes to date.

Capturing and storing carbon generated by its grain and oilseed processing facilities allows ADM to offer lower-carbon ingredients to its customers, many of whom have committed to reducing their own supply-chain emissions.

The pipeline would also have spare capacity to serve ADM customers looking to decarbonize.

“This is an exciting opportunity for ADM to connect some of our largest processing facilities with our carbon capture capabilities,” Chris Cuddy, president, Carbohydrate Solutions for ADM, said in a statement.

Another company, Summit Carbon Solutions has faced opposition from farmers over plans to build a 2,000-mile, $4.5 billion carbon pipeline in the Midwest due to concerns about land usage and potential crop damage.

Underground geological formations in the United States have the potential to store 2.6 trillion tons of planet-warming CO2, enough to cover all of America’s historical emissions and those to come for centuries, according to the Department of Energy.

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