Global Ag News for Sep 2nd

TODAY – EXPORT SALES

Wheat prices overnight are down 4 3/4 in SRW, down 3 in HRW, down 6 1/2 in HRS; Corn is down 5; Soybeans down 2 1/2; Soymeal down $0.10; Soyoil down 0.01.

For the week so far wheat prices are down 23 in SRW, down 23 in HRW, down 25 1/2 in HRS; Corn is down 36; Soybeans down 48; Soymeal down $0.99; Soyoil down 2.40.

Chinese Ag futures (JAN 22) Soybeans up 18 yuan ; Soymeal down 10; Soyoil down 74; Palm oil down 104; Corn up 6 — Malasyian Palm is up 66. Malaysian palm oil prices overnight were up 66 ringgit (+1.58%) at 4242 as traders assessed the potential for increased purchases after recent price declines.

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

The player sheet for Sept. 1 had funds: net sellers of 4,500 contracts of  SRW wheat, sellers of 11,000 corn, sellers of 9,000 soybeans, sellers of 2,000 soymeal, and  sellers of 2,500 soyoil.

Preliminary changes in futures Open Interest as of September 1 were: SRW Wheat up 5,503 contracts, HRW Wheat up 1,002, Corn down 1,452, Soybeans down 890, Soymeal up 640, Soyoil down 5,512.

There were changes in registrations (180 SRW Wheat, 149 Soyoil, -13 HRW Wheat). Registration total: 1,180 SRW Wheat contracts; 53 Oats; 0 Corn; 0 Soybeans; 398 Soyoil; 1 Soymeal; 1,275 HRW Wheat.

TENDERS

• WHEAT SALE: Algeria’s state grains agency OAIC purchased 460,000 to 490,000 tonnes of optional-origin milling wheat in an international tender that closed on Tuesday
• FAILED WHEAT TENDER: Jordan’s state grain buyer the trade ministry has made no purchase in an international tender to buy 120,000 tonnes of milling wheat which closed on Wednesday, traders said.
• VEGOIL TENDER UPDATE: Egypt’s state grains buyer, the General Authority for Supply Commodities, said the arrival date for a vegetable oils tender to be held on Thursday has been changed to between Oct. 20 and Nov. 5.

PENDING TENDERS

• FEED WHEAT TENDER: An importer in the Philippines is tendering to purchase an estimated 60,000 tonnes of animal feed wheat
• WHEAT TENDER: Bangladesh’s state grains buyer issued an international tender to purchase 50,000 tonnes of milling wheat
• WHEAT TENDER: Turkey’s state grain board TMO issued an international tender to purchase about 300,000 tonnes of milling wheat
• WHEAT TENDER: The Taiwan Flour Millers’ Association issued an international tender to purchase 48,875 tonnes of grade 1 milling wheat to be sourced from the United States
• WHEAT FLOUR TENDER: The state purchasing agency in Mauritius issued an international tender to buy 47,000 tonnes of wheat flour to be sourced from optional origins

U.S. Soybean Crushings at 166M Bushels in July: USDA

USDA releases monthly oilseed report on website.

• Crushing 9.8% lower than same period last year
• Crude oil production 7% lower than same period last year
• Crude and once-refined oil stocks down 2.5% y/y

U.S. Corn Used for Ethanol at 449.1M Bu in July

• Corn for ethanol was 5.9% higher than in July 2020
• DDGS production rose to 1.97m tons

GRAIN EXPORT SURVEY: Corn, Soy, Wheat Sales Before USDA Report

Estimate ranges are based on a Bloomberg survey of six analysts; the USDA is scheduled to release its export sales report on Thursday for week ending Aug. 26.

• Corn est. range 500k – 1,600k tons, with avg of 1,002k
• Soybean est. range 750k – 1,400k tons, with avg of 1,011k

USDA to Review Corn, Soy Acreage Earlier Than Normal Oct. Timing

USDA says it will review all available data for planted and harvested acreage for corn, soybeans, cotton, peanuts, rice, sorghum and sugarbeets ahead of the September 10 crop production report.

• If any changes are needed, USDA will publish updated estimates in the report, agency says in statement
• It’s “normal practice” to review data for cotton, peanuts, and rice in Sept. and for corn, sorghum, soybeans, and sugarbeets in Oct., “however the data are sufficiently complete this year to consider adjustments in September”: USDA
• USDA says in Oct. it will again review acreage for corn, sorghum, soybeans, and sugarbeets, as well as for canola, dry edible beans, and sunflowers

Marquis Ethanol Output Unaffected by Fire at Top U.S. Plant

Marquis Energy’s corn-based ethanol production facility in Illinois, the largest in the U.S., wasn’t damaged and remains fully operational after a fire in a building on plant grounds, according to company lawyer Don Rayfield.

• The fire was contained to the dryer building, where corn husks are sent as part of process of being used as dried distillers grains, or DDGs, a key ingredient in feed for beef cattle and dairy cows
• The fire may have been caused by dust in the exhaust duct from the driers; the building remains closed and the timing for reopening isn’t yet known: Rayfield
• DDG production is cut by about 50%; not clear if the making of distillers corn oil, used to make biodiesel, is impacted: Rayfield
• NOTE: The plant by Hennepin, Ill., has capacity to produce 400 million gallons of corn-based ethanol a year; it’s the world’s largest dry mill ethanol plant

Top Grain Traders Still Lack Power at Louisiana Export Hub

Archer-Daniels-Midland Co. and Bunge Ltd. remain without power at Louisiana port terminals after Hurricane Ida forced the companies to shut down over the weekend.

• Bunge has no estimate on when it will restart an export terminal and soybean crushing plant in Destrehan, which were shut down Saturday, spokeswoman Deb Seidel says Wednesday in email
• Company initially planned to restart facilities on Tuesday
• ADM has no power at four grain elevators in Louisiana that shut down ahead of Ida’s landfall
• “So far, we are not finding significant structural damage, but power remains out in the area,” ADM spokeswoman Jackie Anderson says Wednesday in email
• Cargill Inc.’s facility in Reserve, which handled about 9% of key U.S. crop exports, was badly damaged and needs repairs before it can resume vessel loading

India seals deals to import 250,000 T soymeal, buys back exported cargoes

India has contracted to import 250,000 tonnes of soymeal, including 15,000 tonnes that Indian dealers had shipped out only two months ago, traders said.

New Delhi last month allowed imports of genetically modified (GM) soymeal for the first time to help the poultry industry, which is reeling from a surge in local soymeal prices that tripled in a year to a record high. But even before the government allowed GM soymeal imports, traders started booking shipments to meet rising demand in the country.

A sharp rise in Indian soymeal prices meant that sending the cargo back to India was profitable by at least $500 a tonne more than selling the consignment to Europe, said a German trader.

Brazil 2021/2022 soybean crop seen at 143.3 mln T – StoneX

• BRAZIL 2020/2021 SECOND CORN CROP SEEN AT 59.1 MILLION TNS VERSUS 59.6 MILLION TNS IN PREVIOUS FORECAST – STONEX
• BRAZIL 2021/2022 SOYBEAN CROP SEEN AT 143.3 MILLION TNS, UNCHANGED FROM PREVIOUS FORECAST – STONEX
• BRAZIL 2021/2022 FIRST CORN CROP SEEN AT 29.8 MILLION TNS, UNCHANGED FROM PREVIOUS FORECAST – STONEX

Argentine farmers weigh grains strike over beef export cap

Argentina’s farming associations are discussing a potential grains trade strike to protest extended limits on beef exports, industry leaders told Reuters on Wednesday, ramping up tensions with the government over the restrictions.

The South American country, the world’s top exporter of processed soy and a major producer of corn and wheat, this week extended a strict cap on shipments of beef until the end of October, stoking tensions with agricultural producers.

Argentina Crop Exporters Sold Record $3b on FX Market in Aug.

That’s a 75% increase y/y and a 13% fall m/m, Ciara-Cec, Argentina’s crop export and crushing chamber, says in an emailed statement.

• FX sales in August were the most for that month in data going back two decades
• Year-to-date sales of $23.23b are also a record for the first eight months and up 74% y/y
• Record comes as high commodities prices drive farmer selling and despite shipping problems posed by a drought on the Parana River

Argentina’s 2020/21 soybean sales reach 28.5 mln tonnes -ministry

Argentine farmers have sold a total 28.5 million tonnes of soybeans from the 2020/21 crop, after registering sales over a seven day period of 568,600 tonnes, the Ministry of Agriculture said on Wednesday.

The scale of sales of one of Argentina’s main crops was behind that of the previous season, when by this point some 30.3 million tonnes of the oilseed had been sold, the ministry said in report with data updated through Aug. 25.

The 2020/21 soy harvest in Argentina ended in June at 43.5 million tonnes, according to the Buenos Aires grains exchange, compared with 49 million tonnes in the 2019/20 season.

Soy is a major driver of export dollars needed to replenish central bank foreign currency reserves strained by a three-year recession exacerbated last year by the COVID-19 pandemic.

The ministry said sales of 2020/21 corn had reached 38.7 million tonnes, about 3 million tonnes more than sales registered at the same time last year. The exchange estimates 50.5 million tonnes of corn were harvested in the 2020/21 season, which finished last month.

Argentine farmers have sold a total of 5.7 million tonnes of wheat for 2021/22, with the harvest starting in November. The Buenos Aires exchange has estimated the new wheat crop at 19 million tonnes.

Germany faces long-term fight against African swine fever

Germany is facing a long-term battle to eradicate African swine fever carried into the east of the country by wild animals, state and federal authorities said on Wednesday.

Some 2,036 cases of the disease have been confirmed in wild boar near the border with Poland, where the disease is widespread. Wild animals crossing into Germany from Poland were behind an outbreak last year.

China and many other pork buyers banned imports of German pork in September 2020 after the first case was confirmed in wild boar, causing a major loss of business for Germany.  

EPA Asks to Reconsider 2018 Biofuel Waivers Granted to Refiners

EPA has asked a U.S. appeals court to send back 31 of the Renewable Fuel Standard exemptions it granted to small oil refineries for 2018, raising further questions about the Biden administration’s biofuel policy plans.

• EPA argues that a voluntary remand would give the agency a chance to reconsider the waivers “in light of intervening judicial decisions” and “provide a more robust explanation of its action,” according to Aug. 25 filing in the U.S. Court of Appeals for the D.C. Circuit
• If granted, it appears EPA would have leeway to “revoke exemptions or to shore up legal defense of the exemptions should the agency choose to leave them in place as is,” ClearView Energy Partners analysts wrote in a note Wednesday
• Renewable Fuels Association supports EPA’s attempt to reconsider the “lawless exemptions,” but opposes the remand request because it wouldn’t vacate the waivers or put “some kind of limitations” on EPA’s review, RFA CEO Geoff Cooper said in a statement
• NOTE: EPA’s move comes as it prepares to formally propose how much renewable fuel must be mixed into gasoline and diesel in 2021 and 2022