Grains, Seeds, Vegoils, Meals, Softs, Agri News

May 14 - Market Briefing: Dairy (IHSmarkit)

Production

Uruguay’s raw milk collections totalled 448 million litres in the first quarter of 2021, a 7% y/y increase and record volume for the month. Collections in March alone topped 147 million litres, up 9% y/y and 7% m/m.

Milk collected in the month earned a total revenue of UYU2 billion (USD46 million) for Uruguayan milk farmers, translating into an average milk price of UYU13.96 (USD0.32)/litre, stable month-on-month but up 14% y/y.

Demand

New Zealand’s a2 Milk Company has once again cut its forecast sales and earnings for financial year 2021, owing in particular to excess inventory, prompting a NZD80-90 million write off in its value. The levels were higher than expected and most of the product was close to being out-of-date. This was due to the collapse in supplies to China, its main customer, through the daigou channel, informal cross-border selling by international students and tourists which was shut down due to Covid-19. The company said that by the end of this financial year it will reduce the amount of product sold through daigou, to soften the effects of the collapse of daigou .

Trade

The US exported215,600 tonnes (in milk solids equivalent) of total dairy volumes in March, which is a new record. All major commodities grew in March: NFDM/SMP and whey both reached all-time highs with exports equivalent of 86,500 tonnes (up 39% y/y) and 57,200 tonnes, respectively. Cheese exports had their second-best month of all time, with exports totalling 36,900 tonnes, 10% up y/y. Butter exports, given the US’ current competitive prices compared to other global origins, jumped 148% to 4,600 tonnes. This growth can partially be attributed to a ‘rubber band’ effect where product was purchased months ago by China and in March was finally able to be shipped. While this is likely part of the increase, strong demand out of the Asian region is also driving these purchases and the US has been able to capitalize.

Prices

European wholesale dairy commodity prices were boosted by the end of Ramadan and the Algerian ONIL’s international milk powder tender. Over the past week, SMP prices have risen in all the major western European producer countries. On the Dutch PZ exchange, the price was up by 2% w/w at EUR2,580/ tonne, while the German Kempten price gained less than 1% to EUR2,600/ tonne. Both values were the highest recorded since February 2020. The French AgriMer price was up by 1%, at EUR2,567/ tonne.

May 14 - Market Briefing: Meat and Livestock (IHSmarkit)

Production

Turkish poultrymeat production fell in the first quarter of this year as the industry wrestled with high feed costs and disruption caused by Covid-19. The country produced 528,968 tonnes of chicken meat in the January-March period – down 3.5% y/y. Meanwhile, Poland’s problems with avian flu worsened again last week as another million birds had to be destroyed following outbreaks of the disease. Around eight million birds have now been lost to avian flu in Poland since the start of this year.

Demand

Global pork consumption should rise by 5.9% y/y in 2021 to 103.30 million tonnes, supported by the worldwide efforts to combat Covid-19, and China’s recovery from African Swine Fever (ASF), according to new forecasts from IHS Markit. This demand increase reverses a 3.8% y/y decrease in 2020 amid losses from the negative effects of both Covid-19 and ASF last year. In 2022, consumption is to rebound by an even stronger 9.4% y/y to 113.06 million tonnes, which brings it back to around the figures seen in 2018.

Trade

New Zealand exported red meat and co-products worth just over NZD1 billion (USD730 million) in March. Of this total, some NZD464 million (+35% y/y) was generated by exports to mainland China. NZ red meat exports for the first quarter of 2021 were worth NZD2.7 billion. Elsewhere, Brazil’s unprocessed poultrymeat exports reached 362,774 tonnes in April – up 13% y/y. On the downside, several Brazilian slaughterhouses have been suspended by Saudi Arabia – Brazil’s second largest export market.

Prices

European broiler prices have broken through the EUR2 per kg barrier for the first time since 2014, as a combination of supply and demand factors continue to drive the market higher. The EU average broiler price in the week ending 2 May was EUR200.19 per 100kg, up by 0.6% week-on-week. Supplies have been disrupted by avian flu outbreaks, while demand for grilling parts has been given impetus by the upcoming holiday season across much of Europe. Prices have been particularly strong in Southern Europe, with prices standing more than 25% above the level of this time last year in both Spain and Italy, and more than 50% in Portugal.

May 14 - Strategie Grains keeps EU wheat crop forecast despite France cut 

Consultancy Strategie Grains kept unchanged its monthly forecast for soft wheat production in the European Union this year as a weather-related reduction for France was offset by favourable prospects in the southeast of the bloc. The French firm still expects the 27-country EU to produce 129.6 million tonnes of soft wheat, up 8.5% from last year's 119.4 million, it said in a cereal report summary released on Thursday.

May 14 - Biofuels processor POET in talks to acquire Flint Hills' ethanol assets - companies 

POET, the largest biofuels producer in the United States, is in discussions with Flint Hills Resources to acquire the entirety of Flint Hills' ethanol assets, both companies told Reuters on Thursday. The deal would increase POET's potential production capacity for ethanol by more than a third to 3 billion gallons per year, said Jessica Sexe, a spokeswoman for POET.  

May 14 - Japan buys 122,180 tonnes food wheat via tender 

Japan's Ministry of Agriculture bought 122,180 tonnes of food-quality wheat from the United States, Canada, and Australia in a regular tender. Japan, the world's sixth-biggest wheat importer, keeps a tight grip on imports of the country's second-most important staple behind rice and buys the majority of the grain for milling via tenders typically issued thrice a month.

May 13 - Vehicle and vessel traffic remains halted for a second day after a crack was discovered on a major, 900-foot-long bridge over the Mississippi River that connects Arkansas and Tennessee. Arkansas Department of Transportation Director Lorie Tudor says inspectors yesterday afternoon found "a significant fracture in a steel beam that is crucial to the structural integrity" of the bridge known as the Interstate-40 Mississippi River Bridge, and also as the Hernando de Soto Bridge. The bridge opened in 1973 and carries 41,000 vehicles a day, while the waterway under the bridge is vital for barge traffic carrying freight and commodities, she says, adding the bridge will reopen when it's safe.

May 13 - Domestic demand to pressure U.S. corn, soy, wheat stocks as exports fade 

Strong domestic demand will keep U.S. stockpiles of corn and soybeans near seven-year lows even after farmers harvest the crops they are currently seeding, the government said on Wednesday. The stocks estimates were in line with market expectations but the report showed that the recent gains in ag commodities, highlighted by soybean futures' rally to a nearly nine-year high this week, are likely to continue. 

May 13 - USDA less worried about next year's corn supply than the market -Braun 

Chicago corn futures are trading at multi-year highs after major harvests came up short and China burst on to the import scene, but the U.S. government thinks the situation will be more manageable throughout the next year than market participants might have expected. The key to this supply boost is a substantial recovery in production, though confidence in that is a long way off and inventory is expected to remain historically tight.

May 13 - Ukraine's grain exports down 24.1% so far in 2020/21 season 

Ukrainian grain exports have fallen by 24.1% to 39.6 million tonnes so far in the July 2020 to June 2021 season, agriculture ministry data showed on Wednesday. The exports included 15.3 million tonnes of wheat, 19.6 million tonnes of corn and 4.13 million tonnes of barley, the data showed.

May 13 - Britain's wheat imports climb in March 

Britain's wheat imports accelerated in March and are running well above last season's pace, customs data showed on Wednesday. Wheat imports for the month totalled 176,615 tonnes, up from 95,266 tonnes in February.

May 13 - Lean hog futures trading on the CME closed up 0.8% to $1.12025 per pound. Higher prices were supported by the USDA's latest projections in its WASDE report released this afternoon -- in which the agency forecasts that US pork production is expected to fall this year due to an expectation of decreased carcass weights. Livestock demand on the export market is also expected to grow this year, the USDA says. "Beef, pork, and broiler exports are raised on recent trade data and expectations of stronger growth to a number of key markets," the USDA says. Meanwhile, live cattle futures closed trade down 0.1% to $1.1865 per pound.

May 12 - Rebound at Bayer's agriculture unit blighted by forex headwinds 

Bayer's first-quarter adjusted core earnings slipped 6.2% as weak overseas currencies offset a rebound in demand for its agricultural supplies. Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs declined to 4.12 billion euros ($5.00 billion), it said on Wednesday, well ahead of an analyst consensus of 3.82 billion euros posted on the company's website.

May 12 - France sees 10% drop in maize area as spring sowing shrinks 

The area sown with grain maize in France is expected to fall by 10% this year as spring crops lose strong gains made in 2020, the farm ministry said on Tuesday. In its first projection of 2021 maize (corn) sowing, the ministry pegged the grain maize area, excluding crop grown for seeds, at 1.44 million hectares, down from 1.61 million in 2020 but in line with the average of the past five years.

May 11 - EU 2020/21 soybean imports 12.95 mln T by May 9, rapeseed 5.71 mln T 

European Union soybean imports in the 2020/21 season that started last July had reached 12.95 million tonnes by May 9, data published by the European Commission showed on Monday. That compared with 12.70 million tonnes cleared by the same week last season, the data showed. Since Jan. 1, the European Commission's data has covered the EU's 27 countries only, whereas previous figures up to Dec. 31 covered both the EU-27 and Britain.

May 11 - Brazil's second corn crop forecast cut as drought worsens - AgRural 

Brazilian agribusiness consultancy AgRural on Monday said it cut its production estimate for Brazil's second corn crop in the Center South region due to a prolonged drought that worsened in the first week of May. Farmers there are now expected to reap 65.1 million tonnes of second corn, down from 73 million tonnes estimated on April 19, according to a statement. At the same time AgRural said average yields are now seen at 84.1 60-kilo bags per hectare, the lowest in three years.

May 11 - ADM to build new soy crushing facility to meet rising food, fuel demand 

U.S. agricultural commodities trader ADM said on Monday it planned to build a soy-crushing facility and refinery in North Dakota to meet increasing demand for food and renewable fuel. Companies are counting on rising demand for food as restaurants and the travel sector emerge from the COVID-19 pandemic, and for feedstocks to produce biofuels, including renewable diesel.

May 10 - Ukraine grain exports down 23.6% so far in 2020/21 season 

Ukrainian grain exports have fallen by 23.6% to 39.24 million tonnes so far in the July 2020 to June 2021 season, agriculture ministry data showed on Friday. The exports included 15.14 million tonnes of wheat, 19.36 million tonnes of corn and 4.12 million tonnes of barley, the data showed. 

May 10 - French soft wheat crop rating slips again 

The condition of French soft wheat declined for a fourth consecutive week but remained well above the level a year earlier, data from farm office FranceAgriMer showed on Friday, as crops emerged from a chilly, dry April. An estimated 79% of French soft wheat was in good or excellent condition in the week to May 3, down from 81% a week earlier, FranceAgriMer said in a cereal crop report.

May 10 - China 2021 corn output to rise 4.3% y/y to 272 mln tonnes - govt think tank 

China's 2021 corn output is forecast to rise 4.3% from the previous year to 272 million tonnes, a government think tank said on Friday, in the first estimate by an official agency for the crop to be harvested later this year. Corn acreage in 2021 is expected to increase 3.3% from the previous year to 42.63 million hectares (105.3 million acres), China National Grain & Oils Information Center (CNGOIC) also said in a statement published on its official WeChat account.

May 07 - Market Briefing: Dairy 

Production

New Zealand’s milk production on a litres basis rose 10% in March y/y, despite drier than average conditions across most regions of the country. The growth came from good rainfall in the North Island throughout the month: collections in the region surged 18% y/y to 74.7 million kgMS. The country’s total milk collections were 8% ahead of March 2020, at 138.2 million kg/MS.

According to preliminary data, Argentine dairy exports in March represented 29% of total raw milk produced in the month, which was up 5% m/m and 4% y/y to 828 million litres. Production fell 15% in February to 788 million litres, but was up by 2% y/y. The decline was caused by expensive feed which also resulted in lower exports.

Demand

Brazil and Algeria accounted for 28% and 22% of total Argentine exports in February, with China coming in third (12%). Despite higher imports in February, China’s purchases are expected to decline toward the second half of the year.

Russian ice cream consumption is forecast to increase 1% this year, which will reach a 10-year record of 448,000 tonnes or 3.1 kilos per capita, driven by rising exports. Despite the pandemic-related restrictions, in 2020 Russians consumed 9% more ice cream y/y, or 3 kilos per capita.

Trade

Argentina’s total dairy exports declined in volume and revenue in February. Total value fell to USD83 million, down 10% y/y and 39% m/m, while the volumes shrunk by 6% y/y and 40% m/m, to a total of 26,800 tonnes. WMP was the main exported product in the period, accounting for 33% of the total volumes shipped in February, followed by cheeses (22%) and whey (16%).

Prices

GDT butter plunged 12.2% to USD5,035/tonne at the latest (4 May) event. Market watchers attribute this to higher butter volumes offered at the auction, which grew 31% (395 tonnes) compared with the 20 April event, bringing the total up to 1,630 tonnes. The price dip has brought New Zealand prices closer to the levels currently seen in the EU (USD4,797); however, New Zealand product remains the least competitive origin among the competitors.

SMP prices have strengthened in both the Netherlands – up 1.2% to EUR2,540/tonne – and Germany, where the price has gained 2% to EUR2,590/tonne. With animal feed prices still very high, the discount for feed-grade SMP has shrunk to just 4% in Germany and has evaporated completely in the Netherlands. The French AgriMer price for SMP was virtually unchanged, at EUR2,549/tonne.

May 07 - Market Briefing: Grains and Feed

Production

Chinese rice production is forecast to rise by 0.5% to 213 million tonnes in 2021/22, an equivalent of 149 million tonnes milled rice, due to higher planted area, USDA said. Yields are expected to remain stable at 7.07 tonnes/hectare in 2021/22 compared to 7.04 tonnes/hectare the previous year.

Brazil milled 13 million tonnes of wheat in 2020, up 1% y/y, as the Covid-19 pandemic has not affected purchases of wheat flour-based food products, the Brazilian Wheat Industry Association (Abitrigo) reported.

USDA rated 48% of the winter wheat crop across the 18 main producing states in ‘good-to-excellent’ condition, down 1% point from a week earlier. US corn planting edged up to 46% as of May 2 against 17% in the week prior, in the 18 major states reaching almost the same rate recorded in May, 2, 2020 at 48%.

Demand

2021/22 China’s rice consumption is forecast at 158 million tonnes, up 3 million tonnes compared to 2020/21 driven by higher feed use, while 2021/22 ending stocks are forecast at 102 million tonnes, down 15 million tonnes from 2020/21 due to a higher industrial and feed consumption, USDA said.

Trade

Vietnamese rice exports declined by 19% y/y to 531,000 tonnes in March, due to reduced exports to Asia, according to USDA reported. Exports to Asia fell by 28% y/y to 361,220 tonnes on reduced sales of 5% broken rice, down 46%y/y to over 163,200 tonnes and glutinous rice down 22% y/y to 91,500 tonnes, and despite an increase of 23% to 77,000 tonnes of jasmine rice.

Prices

Thai rice export prices for all grades of rice fell by 1-3% w/w, as domestic use reduced due to new cases of Covid-19 in the country, according to USDA. Thailand’s benchmark 5% broken white rice price fell by 3.5% to USD464/tonne, while parboiled 100% declined by 3.3% to USD462/tonne, in the week ending April 26.

Brazil’s domestic corn prices increased by 1.1% w/w to BRL99.76 (USD18.36)/60-kilo bags in the week ending April 30 in the city of Campinas. Throughout April, domestic prices were at their highest levels due to tight supply and concerns over winter crop failure due to insufficient rainfalls.

 

May 07 - USDA Secretary Vilsack and other government officials unveil a report kicking off a decade-long effort to conserve and restore 30% of US lands and waters by 2030, called the country's first ever national conservation goal. The initiative comes in response to an executive order from the Biden administration directing federal agencies to collaborate to fight climate change, and will lean on "locally led and voluntary" efforts, according to officials. Vilsack said the campaign seeks to boost, incentivize and reward voluntary conservation efforts by US farmers and ranchers, who are bearing the brunt of climate change.

May 07 - China's April soybean imports climb 11% on year as delayed cargoes arrive 

China's soybean imports in April rose 11% from the same month a year earlier, boosted by the arrival of some delayed cargoes, customs data showed on Friday. China, the world's top importer of soybeans, brought in 7.45 million tonnes of the oilseed in April, up from 6.714 million tonnes a year earlier, according to General Administration of Customs data.

May 07 - CBOT corn futures overpower soybeans as supply fears smolder -Braun 

Chicago-traded November soybeans on Thursday topped $14 per bushel for the first time in eight years, having surged 27% since the start of 2021. That is the best performance for the contract during that period in nearly 50 years, but it has still staged historic losses relative to corn.

May 07 - Dryness speeds Argentine soy harvest but poses 'underestimated' problem for exports 

Argentine soy and corn harvesting is being driven by ideal weather conditions but the lack of rain that is helping farmers bring in crops is also contributing to the shallowness of the Parana River, which has begun to dent agricultural exports. Lack of navigability on the river, which carries about 80% of Argentine grain exports, is "an underestimated problem" for exporters, German Heinzenknecht, a meteorologist at consultancy Applied Climatology, said on Thursday.

May 07 - South Korea’s NOFI buys corn in 276,000 tonne tender -trade 

South Korea's largest animal feed maker Nonghyup Feed Inc (NOFI) purchased animal feed corn in an international tender for up to 276,000 tonnes, European traders said. The volumes bought were initially unclear but said to be close to the 276,000 tonnes sought in the tender, which closed on Thursday.

May 06 - IHSmarkit Dairy Price Update: Upturn in EU dairy markets as export markets remain strong

    Stocks reported to be low despite milk production reaching seasonal peak
    EU milk powder still in demand on Chinese market
    Big jump in German packaged butter price

European dairy commodity prices have pushed upwards once again over the past week, following several weeks of generally stable markets.

EU milk deliveries are expected to reach their seasonal peak over the next couple of weeks - but there are no sign at all of any seasonal flush overburdening the market. Instead, stocks of butter and SMP are reported to be on the low side, leaving upside potential in the event of any renewed upturn in demand.

The EU is continuing to undercut New Zealand on export markets, although the most recent drop in butter prices at the GDT auction may close that gap a little.

Chinese demand for milk powder is reported to be strong, while the end of Ramadan in mid-May could deliver a further demand impulse.

On major western European markets, a firming trend is apparent across all main commodities.

The French AgriMer exchange continues to be a regional leader for butter, with prices rising by 1.1% over the past week to EUR4,299/tonne. Meanwhile, a surge in retail demand in Germany has pushed up prices for retail (packaged) butter on the Kempten exchange by some 4.8%, to EUR4,030/tonne. The price for industrial (bulk) butter has however fallen by 1.9%, to EUR3,880/tonne.

The Dutch PZ butter price is unchanged week-on-week, at EUR3,920/tonne.

SMP prices are strengthening in both the Netherlands – up 1.2% to EUR2,540/tonne – and Germany, where the price has gained 1.6% to EUR2,590/tonne.

With animal feed prices still generally very high, the discount for feed-grade SMP has shrunk to just 4% in Germany, and has evaporated completely in the Netherlands. The French AgriMer price for SMP is virtually unchanged, at EUR2,549/tonne.

France has however seen a big jump in whey powder prices, up 6.7% week-on-week to EUR1,006/tonne. The Dutch price is up 1.0% at EUR1,020/tonne, and is unchanged in Germany, at EUR1,010/tonne.

Whole milk powder markets are quiet, with only Germany recording a week-on-week change – up by 0.9% to EUR3,280/tonne.

May 06 - Low Parana river level 'trims' Argentine farm exports 

Argentina's Parana River, the grains superhighway that takes soy and corn from the Pampas farm belt to the world, has gotten so shallow that it has started "trimming" international shipments just as the country's export season gets underway. The level of the Parana at the export hub of Rosario, home to some of the biggest soy crushing plants in the world, was a scant 0.90 meters on Wednesday, according to the Coast Guard.

May 06 - Death of Chicago's grain options pits hits traders as crop prices soar 

U.S. grain brokers and analysts on Wednesday lamented CME Group Inc's decision to permanently end open-outcry options trading at a time when crop prices are surging, saying that pit traders could help navigate volatile markets. The owner of the Chicago Board of Trade (CBOT) on Tuesday said it will never reopen physical trading pits it shut last March due to the COVID-19 pandemic, though a Eurodollar options pit will remain open.

May 06 - French wheat shipments outside EU at nine-year low in April 

French soft wheat shipments outside the European Union last month were the lowest for an April in nine years, as exports to Morocco and Algeria eased, Refinitiv data showed. Soft wheat exports to destinations outside the EU-27 and Britain totalled 665,600 tonnes in April, the 10th month of the 2020/21 season, an initial estimate based on Refinitiv loading data showed.

May 06 - Ukraine's grain exports down 24% so far in 2020/21 season 

Ukrainian grain exports have fallen by 24% to almost 39 million tonnes so far in the July 2020 to June 2021 season, agriculture ministry data showed on Wednesday. The exports included 15.13 million tonnes of wheat, 19.14 million tonnes of corn and 4.12 million tonnes of barley, the data showed.

 

 

May 05 - Bunge more than triples its first-quarter profit, lifts 2021 outlook 

U.S. agricultural commodities trader Bunge Ltd on Tuesday said its first-quarter adjusted earnings more than tripled from a year ago as strong crop export demand and stout oilseed crushing margins bolstered its core agribusiness segment. The St. Louis-based company also raised its full-year 2021 adjusted earnings outlook to about $7.50 per share from its earlier forecast of at least $6 per share as easing COVID-19 pandemic restrictions ignite more demand from food service customers and as biofuel production expands.

May 05 - Wetter May pattern might not impede U.S. farmers' corn plans - Braun 

U.S. farmers are ahead of schedule in planting the 2021 corn and soybean crops to kick off May, the busiest planting month. The weather forecast is not exactly wide open to facilitate seamless planting in the coming weeks, but attractive prices may override those imperfections. The widespread dry soil conditions have been both a blessing and a curse since planting is more efficient, but pressure is higher to receive sufficient moisture down the road.

May 04 - Brazil sacrificing ethanol to avoid larger sugar fall, say analysts 

Brazilian sugar cane processors are likely to give an unprecedented preference to sugar over ethanol in their industrial strategies in the new season as they try to avoid a larger decline in the production of the sweetener. According to fresh estimates on Monday, mills in Brazil's center-south (CS) region could earmark the highest percentage of cane for sugar production since 2012, at 48.2%, said JOB Economia consultancy analyst Julio Maria Borges.

May 04 - pies, satellites, subpoenas: soy buyers play hardball with Brazilian farmers 

Global grains merchants are using satellites and spies to surveil Brazil's soybean heartland and deploying an army of lawyers to ensure farmers deliver promised crops instead of finding a different buyer at prices that have doubled since deals were made. At stake are billions of dollars and the sanctity of crop contracts in Brazil, the world's top soy exporter accounting for roughly 50% of the global trade.

May 04 - South Korea’s KFA buys about 65,000 tonnes corn in tender - trade 

The Korea Feed Association (KFA) purchased about 65,000 tonnes of corn which can be sourced from worldwide origins in an international tender which closed on Monday, European traders said. It was purchased at an estimated $319.35 a tonne c&f, traders said.

 

May 03 - French cereal crop ratings fall sharply after dry, cold spell 

The condition of French wheat and barley declined sharply in the week to April 26, data from farm office FranceAgriMer showed on Friday, suggesting a growing impact from dry, cold weather this month. Most crops nonetheless remained in good shape and above year-earlier levels, the data showed. A dry spring so far in much of France, coupled with unusually severe frosts in early April, has raised concern in grain markets that the harvest potential in the European Union's biggest crop producer may be reduced. 

May 03 - Funds unexpectedly sell CBOT corn as end users face unpleasant price tag - Braun 

Speculators were expected last week to have gone on a record buying spree in Chicago corn, but it was a commercial short squeeze that seemed to better explain the highly volatile price activity. In the week ended April 27, money managers reduced their net long in CBOT corn futures and options to 378,663 contracts from 383,998 in the prior week according to data published on Friday by the U.S. Commodity Futures Trading Commission.

May 03 - Argentina grains exports reap $3 bln in April, chamber says 

Argentina's grains exports brought in some $3 billion in April, the CIARA-CEC chamber of exporters and oilseed producers said on Saturday, driven by high global prices for soybeans, corn, wheat and other cereals. The South American country is the world's top exporter of processed soymeal and oil, the global No. 3 corn supplier and a major producer of wheat. 

May 30 - Ukraine grain prices continue rally over the past week 

Ukrainian wheat export prices have risen $14 a tonne over the past week amid fears of a weaker harvest in the United States, the European Union and Brazil, the APK-Inform agriculture consultancy said on Saturday. Bid prices for high-quality soft milling wheat increased to $264-$270 a tonne FOB Black Sea port, APK-Inform said. Feed wheat rose by $12 a tonne to $258-$264 FOB Black Sea.

 

Apr 30 - IHSmarkit Market Briefing: Dairy

Production

New Zealand’s February milk production rose 3% y/y on a litres basis, bringing the 12-month-to-date production up 1%. Collections increased 2.3% to 136.5 million kgMS, with season-to-date volumes slightly down y/y (0.4%) to 1,207.6 million kgMS. Other than the far north of the North island and Fiordland in the Southern Island, the whole country was sunnier than usual for this time of year.

Australian milk production in January increased 3% y/y; year-to-date figures have only grown by 1%. Monthly rates have so far tracked below the forecast range of 1-3% growth, and a flat national milk pool this season is becoming increasingly possible.

In the first two months of the year, Uruguayan milk collection totalled 302 million litres, which is the first time the volumes has exceeded 300 million in this period. Collections in the 12-months-to-February reached 2 billion litres, an increase of 6% y/y.

Demand

The Algerian National Dairy Office (ONIL) has announced its second international tender for the purchase of WMP and SMP this year. The announcement – usually a big international price mover due to Algeria’s significance as one of the largest milk powder importers – has not yet had an effect on GDT prices.

A round of emergency aid announced earlier this year by Brazil is expected to return in April. Supported by payments last year, Brazil managed to boost domestic consumption, which resulted in dairy imports increasing 23% y/y. Even if the consumption tightened as it did earlier this year (with the phase out of payments), new financial support may encourage more imports – despite a strong US dollar and high international prices.

India’s foodservice operators have reported lower sales of items like cheese, butter, paneer and SMP), as the ongoing lockdown restrictions continue damaging dairy demand in the country. Low SMP demand has brought down the prices from the range of INR260-265 (USD3.4-3.5) per kilo to the present rates of INR225-230/kg (USD3.0-3.1/kg). Other dairies have reported prices slumping to INR215-220/kg (USD2.8-2.9/kg). This correction in domestic markets comes even as international SMP prices remain robust.

Trade

Total Chinese dairy imports in January-March have hit 1.07 million tonnes and USD2.7 billion, which is a historical record and a volume that exceeds the Q1 2020 results by nearly 300,000 tonnes (40%). The largest increase was seen in liquid milk and cream, as well as whey, which both surged 59% in volume. While whey demand was sustained by replenishment of stocks to feed China’s pig herd, increased liquid milk and cream imports is a recent trend as Chinese consumers, worried about their health post-pandemic, have started consuming larger amounts of liquid milk as a nutrient-rich and immunity-boosting product.

UK dairy exports in January-February fell 87% y/y and reached 29,500 tonnes as opposed to 234,600 tonnes seen in the same months in 2020. Similarly, value dipped to GBP93 million form the GBP278.7 million in 2020. Besides Brexit, trade data is being affected by the ongoing pandemic and the current shortage of shipping containers, making it difficult to pin these export results exclusively on any single cause.

Prices

Since the end of Chinese New Year celebrations, average milk prices in China have been stabilising at around CNY4.28, up 13% y/y. Oceania WMP price has also somewhat stabilised since the surge seen in early March, with the current discount at 10% to the average China’s domestic milk price (vs the 15% historical average since 2013), based on import parity.

Both April GDT auctions reported stable results, which suggested further easing of aggressive buying from China and a calmer demand from the Middle East due to Ramadan. The product offer on the 20 April auction was at a seasonal low, since the main contracts (the second and the third) fall in June-July, which are the lowest production months in New Zealand.

Average prices for UK dairy commodities in April were stronger m/m, but cream prices continued falling, albeit at a slower rate on EU trade frictions. Wholesale bulk cream averaged GBP1,405/tonne, down 4.5% m/m. Prices were strongest in the early part of the month, rising over GBP1,500/tonne in the run up to Easter. The subsequent drop-off afterwards was exacerbated by factory shutdowns, with surplus product pushing prices as low as GBP1,200/tonne. The dip recovered somewhat by the end of the month; seasonally increasing milk production also weighed on prices.

 

Apr 30 - IHSmarkit Market Briefing: Grains and Feed

Production

USDA forecasts Ukraine’s 2021/22 corn production at 33.5 million tonnes, up 19% y/y. Harvested area is expected to rise by 4% to 5 million hectares in 2021/22, while yields are estimated at 6.5 tonnes/hectare, up 0.9 tonnes in comparison to the previous year.

China’s corn production is estimated to increase by 3% to 268 million tonnes in 2021/22, on higher planted area due to government policy and high corn prices, said USDA

Argentina’s paddy rice production is expected to reach 1.28 million tonnes in 2021/22, compared to the 1.24 million in the previous season, according to USDA’s attaché in Argentina.

A sharp increase in harvested area and bullish prospects on productivity are expected to fuel growth in UK wheat output, up 53% y/y to 15 million tonnes in 2021/22, on the 40-year low recorded in 2020/21, USDA revealed.

EU’s wheat output is forecast to rise by 7% to 134 million tonnes in 2021/22, driven by larger harvests in France, Italy, Romania, Bulgaria, and Hungary, USDA reported.

Trade

Ukrainian corn exports are forecast at 28 million tonnes in 2021/22, up 15% y/y, and representing 82% of the production. In comparison, USDA sees exports at 24 million tonnes in 2020/21, a drop of 17% y/y.

Although official rice and broken rice exports are not yet available, USDA expects Burma’s rice exports to fall in April due to slow trade during the long Myanmar New Year holidays and border gate closures between China and Burma to curb the spread of Covid-19.

Total UK wheat shipments are forecast to rise by almost 90% to 750,000 tonnes in 2021/22 against 400,000 tonnes in the previous crop year. UK’s wheat exports are shipped to the EU, with occasional shipments to North Africa, including Algeria and Morocco.

Demand

China’s domestic corn consumption is forecast at 297 million tonnes in 2021/22, up 5% y/y. This is due to increased feed and residual use, up 7% y/y to 210 million tonnes (as pig herd recovery continues) and steady growth in the food, seed, and industrial (FSI) sector, up 1 million tonnes to 87 million tonnes. The percentage of corn used in feed will continue to depend on the evolution of domestic prices.

Due to sufficient wheat reserves, USDA predicts China’s wheat imports should decline by almost 50% to 5 million tonnes in 2021/22, as corn production increases and prices are expected to ease.

Prices

Brazil’s corn market ended at its highest-level in the week ending April 23, up 0.8% w/w to BRL98.70 (USD17.96)/60-kilo bags in the city of Campinas. The growth was supported by tight domestic supply, expected low volumes of the second corn crop, a weak US dollar and high CBOT future prices.

Thai rice export prices unchanged on slow trading activity ahead of the Thai New Year holiday. Thailand’s benchmark 5% broken white rice and 100% parboiled rice price remained at USD481/tonne and USD478/tonne respectively in the week ending April 12.

The average Russian purchase price for 12.5% wheat in deep-sea ports rose by 2% w/w to RUB14,650/tonne in the week ending April 23, after a long period of decline. Support was provided by rising global prices in recent weeks, SovEcon indicated.

Apr 30 - IHSmarkit Market Briefing: Oilseeds

Production

Ukraine’s government and Ukroliyaprom (industry association of major oil crushers and processors) have set an export cap for sunflower oil at 5.4 million tonnes for the current 2020/21 crop year (September 2020-August 2021), USDA revealed.

Cargill plans to build a USD350 million rapeseed processing facility in Regina, Saskatchewan to “support the growing global demand for rapeseed products”. Cargill expects to begin works early next year with plans to be operational by early 2024. The plant is expected to have an annual production capacity of 1 million tonnes. The company also indicated it will modernise its rapeseed facilities in Camrose and Clavet over the next 12 months, to increase volume and expand capabilities at both locations.

USDA expects Australian rapeseed seeded area to rise by 15% to 2.7 million hectares in 2021/22, due to continued high prices and favourable soil moisture conditions.

Trade

Global soybean exports are expected to remain unchanged at 169.5 million tonnes in 2020/21 on steady sales to China, IGC said. In particular, the US is expected to ship 61 million tonnes, up 34% y/y cashing in on delayed harvest in Brazil. However, the string of heavy US exports is projected to weigh down on stocks.

Brazil’s Executive Management Committee (Gecex), of the Chamber of Foreign Trade (Camex), has temporarily halted the import duties on corn, soybeans, soybean oil and soybean meal until the end of 2021, in a bid to tackle food inflation spurred by rising global food prices.

Demand

EU total oilseeds crush is expected to increase by 0.5% to 46.4 million tonnes in 2021/22 due to a rise in sunflower crush, and a marginal increase in rapeseed crush offsetting lower soybean crush, USDA reported.

Canada has turned to Ukraine for rapeseed amid soaring demand. Two shipments of 30,000 tonnes each are heading off to Canada in April 2021, due to a sharp increase in China’s demand for rapeseed meal and oil along with domestic demand for biodiesel.

Argentine soybean imports should decline by 10% to 4.5 million tonnes in 2021/22. Crush will remain at high levels, up 1% y/y to 42 million tonnes, on robust demand for soybean meal, while domestic consumption should increase marginally, up 1% y/y to 48 million tonnes.

The International Olive Council (IOC) sees record Australian olive oil consumption at 51,000 tonnes of olive oil in 2020/21, against 50,500 tonnes in the previous year.

Prices

The average price of extra virgin olive oil in Jaén, the largest producing city in Spain, reached EUR272/100kg, up 28% y/y, according to the International Olive Council. Several factors have contributed to the price hike including adverse weather, Covid-19 disruptions, global consumption outpacing production and the temporary suspension of 25% tariff on some Spanish olive oils, negotiated by the US and the EU in March, for four months.

Malaysia’s crude palm oil (CPO) price reached RM4,306.5/tonne on April 21, exceeding the previous peak of RM4,270/tonne on April 9, 2021, and up RM198.00 since April 1, according to the Malaysian Palm Oil Board (MPOB).

Apr 30 - IGC trims forecast for 2021/22 global corn crop 

The International Grains Council (IGC) on Thursday trimmed its forecast for global corn (maize) production in the 2021/22 season with a cut in the crop outlook for the United States. In its monthly update, the inter-governmental body reduced its global forecast by a million tonnes to 1.192 billion tonnes, which would still be a record high.

Apr 30 - Surging U.S. crop prices reverse fortunes in rural Iowa 

U.S. farmer Rob Arkfeld was vacationing on a sandy beach in Mexico's Riviera Maya when he won an online auction to rent 535 acres of cropland back home in Iowa by bidding nearly double the local average for each acre. While sipping a drink and swiping his smartphone, the 48-year-old agreed to pay an annual rent of $417.50 per acre for the next two years for the ground in Mills County. That amount is big enough not just to rent, but to buy land in some parts of the United States.

Apr 30 - Russia may limit buckwheat exports to keep national staple at home 

Russia is considering limiting exports of buckwheat for some time to keep domestic prices stable, its agriculture ministry said on Thursday. Many Russians see buckwheat as a national staple that they have stockpiled to get through multiple crises in their history. Every spike in domestic prices gets the attention of the public and officials concerned about social stability.

Apr 30 - Minimal deliveries expected against CBOT May corn, soy futures 

Deliveries against Chicago Board of Trade (CBOT) May grain and soy futures should be minimal on Friday, the first notice day, traders and analysts said on Thursday, citing extremely firm cash markets and dwindling supplies of the 2020 U.S. harvest. Supplies of soybeans and corn in the United States are expected to be the lowest in seven years before harvesting begins in September, and prices are the highest in nearly a decade.

 

 

 

Apr 29 - Russia considers reducing export tax on soybeans from July 1 - Interfax 

Russia is considering reducing its export tax on soybeans to 20%, but not to less than $100 per tonne, starting from July 1, the Interfax news agency reported on Wednesday, citing a source familiar with discussions among officials. The tax of this size, if it is approved by the government, will be in place until September, 2022, the source told Interfax.

Apr 29 - InVivo nears Soufflet takeover deal, eyes 'ABCD' league for future 

France's InVivo expects to conclude in the next two weeks an agreement to buy rival agribusiness Soufflet, which it sees as a step towards creating a European giant to compete with global crop merchants, InVivo's chief executive said on Wednesday. InVivo announced in January it was entering exclusive talks to acquire Soufflet and create a combined group with about 10 billion euros ($12 billion) in sales.

Apr 29 - Farmers struggle to break into booming carbon-credit market 

When Microsoft Corp made a massive purchase of carbon credits in January, it turned to a relatively new source: farmers who plant crops meant to trap carbon in the soil. The credits are financial instruments generated by projects that reduce or avoid the release of greenhouse gases, such as solar farms or tree-plantings. The projects' owners can sell the credits to companies who then use them to make claims of offsetting the climate impact of their operations.

Apr 28 - ADM posts 76% Q1 profit jump, sees strong 2021 as COVID restrictions ease 

Archer Daniels Midland Co reported a surge in first-quarter profit on Tuesday and forecast "significant year-over-year growth" in 2021 as coronavirus vaccinations accelerate and pandemic restrictions continue to ease, sending shares to a record high. Quarterly profit jumped 76% as robust import demand from China and strong oilseed crushing margins boosted the U.S. grains merchant's core agricultural services and oilseeds unit.

Apr 28 - Perdue shipping one cargo of Brazil soybeans into the U.S. – Cargonave data 

U.S.-based meat processor Perdue is shipping one cargo of 31,450 tonnes of Brazilian soybeans into the United States, according to line-up data from shipping agency Cargonave, as stocks dwindle in the destination market. The Four Turandot vessel chartered by the United States is scheduled to arrive on Wednesday at the port of Barcarena in the north of Brazil, and is expected to sail on May 9, the Cargonave ship line-up data shows.

 

 

Apr 27 - Dairy Price Update: Dairy inventories, production surge in the US (IHSmarkit)

- Dairy inventories remain elevated

March butter inventories were nearly unchanged from February at 354.6 million pounds. This remains a significant increase from the year prior, up 15% year-over-year. Despite the large year-over-year growth, it looks like strong demand from the export sector on account of the steep discount between US price and those of major exports, particularly New Zealand are helping to keep inventories in check. Additionally, the resumption of food service demand, where butter is used more widely than in home has aided in keeping inventories flat from last month. Presumably, the fast roll out of the COVID vaccines, regularly 3 million shots per day, will continue to support a rebound in food service. This coupled with pent up demand for hospitality services (travel, leisure, dining out, etc.) will likely keep butter demand strong going forward. If inventories remain near unchanged in April, cold storage levels will be lower from the year prior for the first time in 21 months.

Like butter, March cheese inventories remained at elevated levels. However, the similarities end there. Unlike butter inventories, cheese storage levels increased rather significantly in March. Cheese inventories were 1,466 million pounds according to USDA NASS. This is just below the peak levels of 1,479 million pounds that accorded in April 2020 in the wake of COVID lockdown restrictions. Since then, government initiatives, like the Food Box program, have attempted to support prices and clear inventories.

While cheese price has been supported, prices are approaching 80% higher year-over-year, they have not done much in the way of clearing inventories. Perhaps, there is some tradeoff on those two objectives. The strong price support provided to the cheese market is antithetical to the desire to reduce inventories to more manageable levels. The 80% increase in prices, still a significant reduction from November, has no doubt provided a strong incentive to keep producing and possibly over produce. Additionally, these programs have become the market mover in the cheese market with prices ebbing and flowing with each rumor and announcement.

- Cheese Markets

After several weeks of cheese prices being gradually bullish and positively correlated with demand trends, we saw a steady decline in spot prices across the board and, with that, the first inversion of block-barrel spread as of April 20. Many people were left wondering how we went from a USD0.26 spread of blocks over barrels to a current USD0.0125 spread of barrels over blocks. The simple explanation is that barrels were getting tight, and the current prices certainly reflect that tightness. There does not seem to be much change on the blocks supply side; instead, it looks like food service demand is pushing the barrels higher. Also, if we look at the seasonality, the block-barrel spread typically tightens in April, which is a normal market trend for this time of year. CME cheddar block prices closed April 23 at USD1.7925 per pound, up USD0.0175 with four bids placed. Barrel prices were up USD0.0100 and closed at USD1.8050 per pound with three bids placed. Cheese futures are currently trading from the mid to high 1.80s for the next two quarters.

- Fluid milk markets

It appears that higher feed costs have not impacted milk production except for some evidence of a slowdown happening on the coast lines and when looking at the state-by-state breakdown in areas that are further from the grain belt, which have higher grain costs due to transportation to the states where production losses were larger. Florida Milk production was (down 7.3%) whereas the big gains in production were in South Dakota (up 13.4%), Indiana (up 10%), followed by Minnesota, Colorado, Texas and Wisconsin. CME April Class III futures were unchanged for this week with prices settling at USD17.64 per hundredweight. May futures were more active with prices rallying to USD19.0 per hundredweight. Class III producers continues to add value to whey as Chinese imports of this commodity were significantly high, reaching 75+%.

- Dry product markets

Chinese import demand for dry products is the big driver of global prices, every 1% change in Chinese imports drives between a 1% and 2% change in Oceania dairy prices. Imports for March were up 53.4%, year over year, and nearly all products also reached percentage gains compared with 2020.

Cash whey prices saw a steep decline at the end of the week, closing at USD0.62 per pound after trading at USD0.675 per pound on Monday, which was up USD0.055. Whey powder production is firm with manufacturers receiving healthy whey supplies for strong drying schedules. Inventories are balanced, setting the stage for a solid dry whey market.

CME April whey futures were higher than the prior week, closing at USD0.616 per pound, down USD0.001, while May futures traded at a premium to April, closing the week at USD0.646 per pound, down USD0.002. Nonfat dry milk (NFDM) prices continued an upward trend during the week ending April 23. Despite abundant milk supplies and strong production, both domestic and export buyers are actively seeking more dry products to purchase. Manufacturers are more interested in the production of low to medium heat NFDM to keep up with the ample supply of milk.

Cash nonfat dried milk (NFDM) prices were up a USD0.0375 trading at USD1.2525 per pound. CME April futures were bearish versus prior week levels and traded at a premium to spot prices, they finished the week at USD1.17125 per pound, down USD0.00375. May futures traded higher than April, the closing price was USD1.224 per pound, down USD0.006. The average future price for Q2 is currently USD1.2275 per pound, while third quarter is averaging USD1.323 per pound.

- Butter markets

Butter continues a bullish trend with cream and fat flowing, continually supported by the reopening process, strong global demand, and the renewed seasonal demand for ice cream. Grade AA butter dropped for the first time on April 16 to USD1.85 per pound and declined even further by the end of the week, trading at USD1.77 per pound, down USD0.08 from the week prior. CME April futures finished the week with zero trades while May futures traded at USD1.8475 per pound, up USD0.0385. Butter prices in the EU and Oceania were weak this week. US cream supplies have had a small decline. US butter stocks almost see an increase between February and March but the market sentiment for this Class IV commodity was flat this year.

Apr 27 - Ukraine traders say grain exports will not exceed agreed volumes 

Grain exports from Ukraine are unlikely to exceed the volumes previously agreed with the government, Ukrainian grain traders union UGA said on Monday. Traders and the government have agreed that no more than 17.5 million tonnes of wheat and 24 million tonnes of corn could be exported from Ukraine in the 2020/21 season ending in June.

Apr 27 - Russian wheat export prices rise with global benchmarks 

Russian wheat export prices rose for a third week in a row last week, buoyed by higher prices in Chicago and Paris on supply concerns, analysts said on Monday. Russian wheat with 12.5% protein loading from Black Sea ports for supply in May was at $265 a tonne free on board (FOB) at the end of last week, up $17 from the previous week, IKAR agriculture consultancy said. 

Apr 27 - High prices nibble at corn's sway as Asian feed buyers switch to wheat 

Asian feed manufacturers are switching to wheat in animal rations as multi-year high corn prices constrict demand for the yellow grain widely used to fatten hogs and chickens. Some of the world's top corn buyers such as China, South Korea and Vietnam are buying more wheat from Australia and the Black Sea region in the months ahead as the landed cost of corn has climbed to a rare premium to wheat, said two Singapore-based grains traders. 

Apr 27 - EU crop monitor trims grain yield forecasts after cold, dry spells 

Potential yields of this year's winter grain crops in the European Union have declined slightly since March as cold and dry weather hampered development and also delayed sowing of spring varieties, the EU's crop monitoring service said. The average soft wheat yield in this year's European Union harvest is expected to reach 5.86 tonnes per hectare (t/ha), down from an initial projection of 5.89 t/ha in March.

Apr 26 - Algeria tenders for May-Jun wheat as futures at 8-year high (AgriCensus)
- Algeria has become the latest country on a growing list of buyers looking to import milling wheat cargoes and secure supply via tender as futures hit fresh multi-year highs on Monday not seen since 2013.
- The Office Algerien Interprofessionnel des Cereales (OAIC) is looking to buy a nominal 50,000 mt of wheat, although it often buys more than the amount it tenders for.
The cargoes are for June shipment if sourced from the EU, USA or Canada, or May if sourced from South America or Australia.
- The tender is set to close Wednesday with offers to remain valid until Thursday evening.
At its previous deep water vessel tender on March 31, OAIC booked 480,000 mt of wheat for April-May shipment at $279/mt CFR.
- Monday’s tender comes as July SRW futures in Chicago traded up 4.5% to $7.46/bu, the highest level since February 2013.
- Algeria's wheat imports in the 2020/21 marketing year are expected at 6.5 million mt and at 5 million mt in 2021/22, according to a USDA forecast.

Apr 26 - Argentina mulling grains export tax hike - gov't official 

Argentina is considering an increase in grains export taxes, an official told local radio on Friday, sparking concern among farm leaders who have long worried that the Peronist government might further intervene in the markets in a bid to control inflation. The South American grains powerhouse is the world's No. 3 corn supplier and top exporter of soymeal livestock feed. It already slaps a 33% tax on international soybean exports; 31% on soymeal and soyoil; and 12% on corn and wheat.

Apr 26 - French wheat, barley crop ratings ease, maize sowing picks up 

The condition of French wheat and barley crops deteriorated marginally for a second week but was still good, data from farm office FranceAgriMer showed on Friday, suggesting a moderate impact so far from recent cold, dry spells. An estimated 85% of French soft wheat was in good or excellent condition in the week to April 19, down from 86% the prior week and 87% two weeks earlier, according to FranceAgriMer's cereal crop progress report.

Apr 26 - Funds boost bullish soy bets but sell corn despite huge rally- Braun  

Chicago-traded grains and oilseeds have gone on an impressive rally this month, though speculators took a much greater interest in soybeans than corn last week despite corn futures gaining ground on beans. Both nearby May and December CBOT corn futures have surged nearly 16% so far this month while May and November soybeans have each jumped 7%.

Apr 23 - IHSmarkit Market Briefing: Oilseeds & vegoils

    Argentine soybean production up 14% y/y to 51.5 million tonnes in 2021/22
    Average price of extra virgin olive oil in Jaén up 28% y/y to EUR272/100kg
    Malaysia’s crude palm oil (CPO) price reached RM4,306.5/tonne on April 21

Production
USDA trimmed prospects for 2020/21 Argentine soybean production to 45 million tonnes, against a previous estimate of 47.5 million tonnes. This is due to a prolonged shortage of rainfall in late February and early March, which delayed planting and severely affected soybean yields in several provinces. Production is expected to resume to 51.5 million tonnes in 2021/22, up 14% y/y on higher yields at 3 tonnes/hectares.

Trade
The Sri Lankan Government has ordered planters to destroy palm oil trees under a phased plan that would see a 10% reduction in trees each year, according to a local news report. Sri Lanka is the latest to prohibit palm oil on its soil, joining the likes of the US and the EU. Growers are expected to replace the fields with rubber or other environment-friendly crops. Currently, Sri Lanka has nearly 11,000 hectares (27,182 acres) of palm oil plantations.

Demand
EU total oilseeds crush is expected to increase by 0.5% to 46.4 million tonnes in 2021/22 due to a rise in sunflower crush, and a marginal increase in rapeseed crush offsetting lower soybean crush, USDA reported.

Domestic soybean consumption in Mexico is expected to grow by 4% to 6.5 million tonnes in 2021/22. Contributing factors include, driven by a projected increase in feed demand and population growth.

Prices
The average price of extra virgin olive oil in Jaén, the largest producing city in Spain, reached EUR272/100kg, up 28% y/y, according to the International Olive Council. Several factors have contributed to the price hike including adverse weather, Covid-19 disruptions, global consumption outpacing production and the temporary suspension of 25% tariff on some Spanish olive oils negotiated by the US and the EU in March, for four months.

Malaysia’s crude palm oil (CPO) price reached RM4,306.5/tonne on April 21, exceeding the previous peak of RM4,270/tonne on April 9, 2021, and up RM198.00 since April 1, according to the Malaysian Palm Oil Board (MPOB).

Apr 23 - IHSmarkit Market Briefing: Grains

    Paraguay’s corn output up 11% to 4 million tonnes in 2021/22
    EU’s grain exports up 6% y/y to 43 million tonnes in 2021/22
    Russian 12.5% wheat prices rose by USD3 to USD247/tonne in deep-sea ports

Production
USDA forecasts Paraguay’s corn output to rise by 11% to 4 million tonnes in 2021/22, its highest level since 2018/19. This was due to a larger crop area, up 7% to 780,000 hectares.

EU’s grain output is expected to rise by 3% y/y to 286 million tonnes in 2021/22 due to improved yields in key producing member states such as France, Romania and Bulgaria. Total grain harvested area in 2021/22 is projected to rise by 1% to 53 million tonnes, driven by a rebound in French wheat planting levels.

Trade
Paraguay’s corn exports are forecast at 2.2 million tonnes, up 13% in 2021/22 on higher output with 50-60% of the volume heading off to Brazil, primarily for the pork and poultry industries. Other export destinations include South Korea, Paraguay, Chile and Saudi Arabia

USDA projects EU’s grain exports and imports to rise by 6% y/y to 43 million tonnes and 24 million tonnes respectively in 2021/22. Exports volume will depend on the completion of harvest prospects.


Demand
Brazil’s Chamber of Foreign Trade (Camex), has temporarily halted the import duties corn, soybeans, soybean oil and soybean meal until the end of 2021, in a bid to tackle food inflation spurred by rising global food prices. Industry sources expect the new measure will encourage US producers to raise exports to Brazil.

Prices
Brazil’s domestic corn prices rose by 3% w/w to BRL97.88 (USD17.52)/60-kilo bags in the city of Campinas, in the week ending April 16.

Thai rice export prices unchanged on slow trading activity ahead of the Thai New Year holiday. Thailand’s benchmark 5% broken white rice and 100% parboiled rice price remained at USD481/tonne and USD478/tonne respectively in the week ending April 12.

Russian 12.5% wheat prices rose by USD3 to USD247/tonne in deep-sea ports in the week ending April 16, supported by higher global prices, SovEcon reported. May Soft Red Winter wheat contract increased by 2% to USD240/tonne, while French wheat jumped by 3% to USD261/tonne, due to drought in Northern American spring wheat regions and cold in the Midwest.

Apr 23 - IHSmarkit Market Briefing: Dairy

Production

Some parts of southern US are reporting modest declines in production due to high temperatures, otherwise the country is at peak production. In spite of this, availability is tightening as demand continues to pick up due to food service demand reasserting itself. Also, cream availability is tightening throughout much of the country, as demand from ice cream producers is picking up with summer approaching.

Demand

The Algerian National Dairy Office (ONIL) has announced its second international tender for the purchase of WMP and SMP this year. The announcement – usually a big international price mover due to Algeria’s significance as one of the largest milk powder importers – has not yet had an effect of this week’s GDT outcomes.

South Korean dairy imports grew by 18% y/y January-March, and by 20% in value. Cheese accounted for nearly 48% of the total, or 42,400 tonnes. Whey imports also grew, but at a slower pace than cheese – by 5.2% to 18,000 tonnes. Liquid milk and cream, the third-largest dairy import category, saw volumes increase 24% to 12,000 tonnes.

Trade

Uruguay’s total dairy export revenue increased by 13% y/y in the first quarter of 2021, reaching USD161 million. In volume, overall dairy shipments were up 14% y/y, tallying 53,000 tonnes, fostered by a 18% y/y rise in WMP, as a 222% y/y increase in butter. SMP and cheeses were down by 4% y/y and 6% y/y.

The significantly cheaper US butter compared with major butter exporters saw US butter exports in February rise 107%, putting the January-February exports up95% y/y. The total volume of 7,076 tonnes for January-February combined is small in terms of global butter trade that amounts to over 900,000 tonnes annually and is dominated by New Zealand and the EU. US imported 44% less butter in January-February y/y.

Prices

Anhydrous milk fat (AMF) declined the most at the 20 April GDT event, down over 3% to USD6,003/tonne. Meanwhile, butter saw only a slight 1% fall to USD5,736/tonne. SMP, on the other hand, barely changed in price, down 0.1% to USD3,365/tonne. WMP declined 0.3% decline to USD4,097/tonne.

The product offer on GDT was at a seasonal low, since the main contracts (the second and the third) fall in June-July, which are the lowest production months in New Zealand. Amongst international competitors, Fonterra is currently the most expensive dairy product origin, but, through its GDT platform, has demonstrated it can sustain sales despite being significantly higher priced.


Apr 23 - IHSmarkit Market Briefing: Meat and Livestock

Production

Despite Australian cattle prices reaching record highs this month, producers still have a long way to go to recover after up to nine years of drought. Last year Australia’s national herd was down nearly four and a half million cattle from a high of more than 29 million in 2013. As producers restock, fewer cattle are being sold. As a result, high prices are not generating a large windfall for producers. Australia’s National Livestock Reporting Service (NLRS) recently reported the lowest March quarter slaughter in over 20 years. Rabobank expects Australian cattle slaughter to fall 6% y/y in 2021, while beef and cattle exports will both drop by 5% y/y.

Demand

Chinese demand for South American beef is proving a double-edged sword for some governments in the region. With more meat shipped abroad, less is available for local consumers, driving up prices on the domestic market. Argentina took steps to address the situation this week, setting up a controversial new meat export registration system to address ‘market imbalances'. Meanwhile Bolivia said meat companies would have to assure supplies to local consumers before being allowed to export any surpluses.

Trade

Russian poultry exporters were this week cleared to resume shipments to Ghana following a six-month ban relating to avian flu. The announcement came as the head of Russia’s state veterinary agency said he believes Russian poultrymeat exports could rise fivefold over the next three to four years to reach around 1.5 million tonnes. Elsewhere, Paraguayan beef exports reached a record 76,056 tonnes in the first quarter of 2021 – up 26% on the same period last year. Export earnings rose by a similar percentage to reach USD338 million.

Prices

Prices for pork and live pigs swung higher in Brazil last week, reversing the declines registered in March. In what is turning out to be a rollercoaster year for markets, wholesale pork prices in the state of Paraná jumped by 17% w/w to stand at BRL10.90 per kg (USD1.94/kg) on 15 April. Prices of live pigs were up 8% w/w at BRL6.50 per kg (USD1.15/kg). Asia’s ongoing problems with African Swine Fever (ASF) remain a key driver for Brazil’s booming overseas sales. Brazilian exports of unprocessed pork averaged 4,861 tonnes per day in the first six working days of April – up 16% m/m and 55% y/y. The average export price rose by 3% y/y to USD2,529/tonne.

 

Apr 23 - China a big buyer of new French wheat crop, traders say 

Chinese buyers are thought to have booked at least half a million tonnes from the next French wheat harvest, as China looks widely to cover grain import needs heightened by a domestic corn deficit, traders said. The sales were believed to be the first confirmed deals involving the 2021 crop and suggest China will remain a major outlet for French wheat for a third consecutive season.

Apr 23 - Frost damage could cut French wine output by a third 

Frost damage to French vineyards this month could reduce wine production by nearly a third compared with recent years, farm office FranceAgriMer said on Thursday, citing initial estimates from wine producers. The losses, subject to revision as the frost impact becomes clearer in the coming weeks, were projected at around 15 million hectolitres and would put France on course for 2021 wine output between 28% and 32% below average volumes of recent years, Ygor Gibelind of FranceAgriMer's wine unit told reporters.

Apr 22 - Palm oil prices surge in early Asian trading after massive gains overnight in soybean oil, says Singapore-based Palm Oil Analytics co-founder Sathia Varqa. Soybean oil prices on the Chicago Board of Trade breached 60 cents a pound for the first time since 2008, driven by a supply crunch due to cold weather in the U.S. and dry weather in Brazil, he says. The benchmark contract for July delivery rises MYR99 to MYR3,993 a ton on the Bursa Malaysia Derivatives Exchange.

Apr 22 - Livestock futures finished lower on the CME, with the most-active live cattle contract ending down 1.6% to $1.1725 per pound and the lean hog contract down 1.7% to $1.04525 per pound. For cattle, today's down day makes it 9 out of the past 10 trading sessions that futures have fallen -- shedding 6.6% in that time period. Today's trading was largely predicated on Friday's Cattle on Feed report, which is expected to show high cattle placements. "Ahead of the report, the average trade estimate calls for a March placement rate at 134% of last year, a marketing rate of 101%, and an April 1 feedlot inventory of 106%," says AgResource. "If confirmed, the placement total will be the largest in 5 years."

Apr 22 - Grains traders are projecting export grain sales to rise from the lower levels seen in last week's USDA report. The uptick in sales is expected to be seen particularly in corn exports, with sales forecasted anywhere between 400,000 metric tons to 1.1M tons for the week ended April 15, which would be up from 380,300 tons reported in last week's report. Grain futures on the CBOT are trading higher, with corn futures up 2.5%, wheat futures rising 2.5% and soybean futures gaining 1.1%.

Apr 22 - Lean hog futures trading on the CME have opened the day down 1.8%, as some traders capitalize on high prices for hogs and cash in, according to StoneX. "Similar to the cattle markets, I think we've seen some long fund liquidation in the hogs as well," says the firm, adding that even with this liquidation, fundamentals for US pork continue to be strong. "The result, I think, is that fund selling in the hogs has been better met with commercial buyers, and certainly finds underlying support in still-firm spot cash hog and pork product markets," says the firm. Meanwhile, cattle futures are down 0.7% this morning.

Apr 22 - Reshaping grain trade ? China moves to change animal feed recipes 

China issued guidelines on Wednesday recommending the reduction of corn and soymeal in pig and poultry feed, a measure that could reshape the flow of grains into the world's top corn and soybean buyer. China's corn prices surged more than a third in the most recent year following a drop in output and state stockpiles. The country started importing a lot more corn to compensate for the domestic deficit. So feed makers have already been switching to cheaper alternatives, especially wheat.

Apr 22 - Indonesia's looser palm plantation rules renew conflict between jobs, environment 

Indonesian farmer Albertus Wawan hopes a new government regulation means the small plot of land where he grows palm oil trees in a forest reserve on Borneo may be recognised as a legal plantation and eligible to access funding. But the hopes of thousands of smallholders like Wawan for the acceptance of their farms inside designated forest areas is alarming green groups and comes at time when palm oil is under scrutiny in some Western countries for its links to deforestation.

Apr 21 - Dairy Price Update: US cheese market weakens as USDA announced food box purchases to end in June (IHSmarkit)

- Dairy feed costs continue to rise, fueled by higher corn, soybean meal and other feedstuffs
- May Class III futures peaked above USD20 per hundredweight before backing off late in the week.
- Whey prices continue to march higher, supported by demand from exports
- Grade AA butter prices decreased USD0.0275 per pound, closing the week at USD1.85 per pound with a weekly average of USD1.8810 per pound

Apr 21 - Dairy’s escalating feed cost

- Dairy feed costs have changed dramatically in the past year. At 12 months ago, corn prices were languishing near USD3.00 per bushel a price barely touched in the past 15 years. At the same time, soybean meal (SBM) prices were languishing below USD300 per short ton, a historically low price, save for the period of the US/China trade tensions. Since then, prices have skyrocketed. Last week, corn briefly traded above USD6.00 before backing off. In January, SBM traded above USD450 per short ton before declining to around USD400, which is where it sits today.
- There are multiple reasons for the rally, including below-normal US corn/soybean production, a surge in energy prices and an overall escalation of commodity prices globally. Many of the factors one can point to for the price escalation are interrelated, making it difficult to assign the actual proportion for each reason. However, it is clear a large portion of it is a result of China’s surging demand for corn, soybeans and other feedstuffs.
- China’s surge in demand is clearly connected to their hog herd’s recovery from African Swine Fever (ASF) over the past three years as China is the largest pork producer in the world, accounting for nearly 50% of world production. It has been devastated by ASF. By some accounts, their hog herd fell 30% at its worst point. Clearly, at some point in 2020, China’s hog herd began to recover in a significant way. Their recovery increased their importation of corn and soybeans to unprecedented levels. Their increase of soybean imports from 2018/19 is expected to be more than 20 million tonnes. Their increase of corn imports during that same time was 25.5 million tonnes. A large portion of these imports has come from the US.
- This surge in imports has left US corn and soybean stocks to their tightest levels since 2013/14, causing the prices to soar. While this situation exists, there are questions whether ASF is reasserting itself in China. The reason this matters to the dairy market is because a slowdown in China’s demand could ease dairy feed costs significantly. The wide-reaching impacts of China’s battle with ASF is the reason we established the China ASF Dashboard. While history points to a lot of misinformation that has come out of the Chinese government and state-sponsored media, we are using a series of market based measures as indicators of their feed demand, which serves as a proxy for their ASF situation.
Cheese Market
- After several weeks of seeing prices being gradually bullish and positively correlated with demand trends, the block to barrel spread has tightened to USD0.09 from a high of USD0.26. Barrels are continually trending upwards to meet cheddar block pricing levels. One of the factors contributing to higher barrel prices is the current strong demand for barrels, used to produce processed cheese slices, cheese sauces, or cheese powders. CME cheddar block prices closed April 16 at USD1.78 per pound, down USD0.05. After three consecutive days with zero bids for blocks, 10 bids were placed on Friday. Barrel prices were down USD0.025 and closed at USD1.69 per pound with seven bids placed. Futures prices have shifted lower this week, coinciding with the USDA announcement to end the Food Box Program after May. However, it is important to point out that CME futures have been holding a premium to the spot market and seemed to be overvalued even before the Food Box news. Cheddar futures closed the week at USD1.70 per pound, up USD0.001 for April, while May futures traded at USD1.829 per pound, up USD0.040. Class III Milk Futures for April traded at USD17.64 per hundredweight, up USD0.08 while May futures traded at USD19.02 per hundredweight, up USD0.52.

Apr 21 - Fluid milk
- Milk production is either at peak production or on the downhill side of peak. Some parts of the Southern region of the US are reporting modest declines in production due to high temperatures, otherwise the country is at peak production. In spite of this, availability is tightening as demand continues to pick up on account of food service demand reasserting itself. Class I milk demand from balancers continues to increase. Cheese makers in the central part of the country are reporting higher milk prices. Also, cream availability is tightening throughout much of the country, as demand from ice cream producers is picking up steadily with summer approaching.
- CME April Class III futures were nearly unchanged this week with prices falling slightly from USD17.68 per hundredweight to USD17.64. May futures were more active with prices rising above USD20 per hundredweight at one point then falling to USD19.04 by the close of the week. In total, price fell by USD.34 per hundredweight in volatile trade. It is important to keep in mind this market has been in a strong uptrend, despite the downward action this week. Since November, the market has rallied 17%.

Apr 21 - Dry product markets
- Cash whey prices continue to move higher, closing the week at USD0.675 per pound, up USD0.045. This continues to be an extraordinary run in this category with cash prices up nearly double from year ago levels and up 46% since just the first of the year. Demand continues to be strong across the board. Additionally, increased amounts are being peeled off for whey protein concentrate and isolate production.
- CME April whey futures were higher, closing the week at USD0.62 per pound, up USD0.015. May futures were more active, moving USD0.03675 per pound higher and closing the week at USD0.64225 per pound. A late-week rally accounted for the upward price action.
- Some in the market are talking about a potential top approaching. However, with exports continuing at a strong level, it is hard to see the fundamental justification for it. February exports were up 28% versus year-ago levels, making January-February up 22%. This is on account of a 160% increase in Chinese imports during that period of time. China’s demand was so strong it essentially crowded out demand from Mexico, Vietnam, and Japan (all were lower versus year-ago levels). As long as China’s demand surge continues unabated, prices will be supported. Additionally, exports of whey protein concentrate (< 80% protein) were up 26% in January and up 13% in January-February combined. China was the biggest year-over-year increase at 101% growth.

Apr 21 - Cash nonfat dried milk (NFDM) prices were up a modest USD0.01 per pound. According to the USDA, prices ended the week at USD1.215 per pound. CME April futures were higher and mostly in line with cash prices. They finished at USD1.169 per pound, up USD0.013. May futures traded with a good deal of volatility this week but ended the week largely unchanged. The May contract finished the week at USD1.198 per pound, up USD0.006. The market continues to feel like it has found a short-term equilibrium.
- Exports for NFDM were strong in February, with the volume leaving the US at a clip 31% above year-ago levels. This put January-February exports up 8%, year over year. The largest increase is coming from shipments to Vietnam, but increases are also seen in Mexico, Philippines, and Malaysia. The only noteworthy decline was to Indonesia.
Butter markets

Apr 21 - Butter is currently the hot commodity with cream and fat flowing continually supported by the reopening process, strong global demand, and the renewed seasonal demand for ice cream. Grade AA butter continued an upward trend for several weeks and dropped for the first time on April 16. The Friday closing price was USD1.85 per pound, down USD0.03 from the week prior. CME April futures closed the week at USD1.80 per pound, unchanged from the week prior, while May futures traded at USD1.85 per pound, down USD0.0175. The long-term strength is debatable for butter but, given the current fundamentals, we could expect a bullish market for butter for the next two quarters.
- The wide discount between US and major butter exporters (New Zealand and the EU) has spurred US exports and depressed imports. In February, US butter exports were more than double the year prior, up 107%. This put the January-February exports at 95% above year-ago levels. The largest increases were to the Middle East (Egypt, Saudi Arabia, and Bahrain). Keep in mind the US export volume of 7,076 tonnes for January-February combined in small in terms of global butter trade that amounts to over 900,000 tonnes annually and is dominated by New Zealand and the EU. On the import side, US received 49% less butter from foreign sources in February than the year prior, taking the January-February volume down 44% year over year.

Apr 21 - Asian food trader Wilmar sees Brazil sugar output falling sharply 

Brazilian sugar production should fall sharply in the new season that started in April, as unfavorable weather continues to hurt sugar cane growth across the center-south region, Asian commodities trader Wilmar said on Tuesday. Wilmar expects Brazil's center-south cane crop to fall to 530 million tonnes in 2021/22, compared with 605 million tonnes in the previous season, with sugar production dropping to 31 million to 33 million tonnes from 38.5 million tonnes.

Apr 21 - Corn crop ratings tumble in southern Brazil after unusually dry stretch - Braun 

Brazil’s heavily exported second corn crop has been on the markets’ radar since last year, when the country’s soybean crop was planted later than usual, increasing the chances that corn would go in late since it is planted immediately after the soy harvest. Those delays worsened earlier this year when soybean harvest came around, as persistent rains kept machinery out of the fields. Second corn was planted at the slowest pace in at least a decade and now weather is threatening to reduce the crop's potential, especially in the south.

Apr 20 - China's soybean imports from U.S. surge in March, Brazilian imports plunge 

China's March soybean imports from Brazil plunged as rain delayed some shipments from the top exporter, but its imports of the oilseed from the United States more than quadrupled. The world's biggest buyer of soybeans imported 315,334 tonnes from Brazil in March, down 85% from 2.1 million tonnes a year earlier, data from the General Administration of Custom showed.

Apr 20 - France set to import large cargo of Romanian wheat 

A large cargo of Romanian wheat has set sail for France, marking an unusually big import of the grain by the European Union's biggest wheat exporter, traders said on Monday. The Star Harmony bulk carrier was thought to be carrying around 45,000 tonnes of wheat from the Romanian Black Sea port of Constanta to the northern French port of Dunkirk, traders said.

Apr 20 - Ukraine limits 2020/21 sunoil exports to 5.382 mln T 

Ukraine's government and sunflower oil producers agreed on Monday to limit 2020/21 sunoil exports to 5.382 million tonnes, aiming to avoid a jump in domestic sunoil prices due to excessive shipments overseas, producers and the government said. Ukraine is the world's largest sunoil exporter and the government had said sunoil exports in the September 2020-August 2021 season might total around 5.52 million tonnes out of output of 5.92 million tonnes this season.

Apr 20 - 'Our factories are hungry' - U.S. farm machinery maker faces dearth of components 

Farmers flush with cash after a run-up in grain prices are clamoring for farm machinery maker AGCO Corp to get them new equipment in time for this year's harvest. This is a boom time for the Georgia-based company after years of depressed demand. But AGCO is scrambling to keep up because disruptions all along its supply chain have left it short of the steel, plastics, microchips and tires it needs to make tractors and combines.

Apr 19 - French wheat ratings lightly down after frost, spring barley falls 

The condition of wheat and barley crops in France only fell slightly during the week when France was hit by a severe cold snap but recently sown spring barley was more severely hit, FranceAgriMer data showed on Friday. For soft wheat an estimated 86% of crops were in good or excellent condition in the week to April 12, nearly stable from 87% the previous week, the farm office said in a cereal crop report.

Apr 19 - APK-Inform sees Ukraine 2021/22 grain harvest, exports rising 

Ukraine's 2021 grain harvest is likely to rise by 13% to 73.6 million tonnes thanks to favourable weather, analyst APK-Inform said on Saturday. The consultancy said in a report that the harvest could include 27.6 million tonnes of wheat, 7.97 million tonnes of barley and 35.71 million tonnes of corn. It said a higher output would allow Ukraine to increase grain exports to 54.2 million tonnes in 2021/22 season from 45.6 million tonnes in 2020/21.

Apr 19 - Japan to import 380,000 tonnes feed barley via tender 

Japan will import 380,000 tonnes of feed-quality barley for livestock use via a simultaneous buy and sell (SBS) auction that closed late on Thursday, the Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on Friday. The ministry had sought 80,000 tonnes of feed wheat and 100,000 tonnes of feed barley to be loaded by July 31 and arrive in Japan by Sept. 30 in the tender that is usually conducted weekly.

Apr 16 - La France possède les plus grandes surfaces de légumes secs bio dans le monde. (Les MARCHES)
Avec près de 131 070 hectares de surfaces de légumes secs cultivées en agriculture biologique en 2019, la France se hisse à la première place du podium des plus grands producteurs mondiaux de légumes secs bio, selon les données de l’enquête établi par FiBL et publiées dans le rapport « The world of organic ». L’Hexagone se place loin devant le Canada (73 248 ha) et la Chine (70 000 ha).

Ces cinq dernières années ont été marquées par une forte croissance des surfaces de légumes secs bio dans le monde. Au total, environ 807 000 hectares de la superficie mondiale de légumes secs, était certifiées bio en 2019. Ce qui représente toutefois que 0,8 % des surfaces totales de légumes secs. Le pois représentait 17,2 % des surfaces totales de légumes secs bio, suivi des lentilles (6,61 %), des haricots (5,67 %) et du lupin (1,63 %).

Apr 16 - Strategie Grains raises EU 2020/21 wheat export forecast 

Consultancy Strategie Grains on Thursday raised its monthly forecast for soft wheat exports from the European Union and Britain in the 2020/21 season by 200,000 tonnes to 25.4 million tonnes, adding pressure on its low ending-stock forecast. It did not give a reason for the change but emphasised that there was a sharp contrast between tight French and German supplies and high inventories in Poland and the Baltic states.

Apr 16 - NOPA March soy crush rises to 177.984 million bushels, but misses estimates 

The U.S. soybean crush rebounded in March from a 17-month low the previous month, but the processing pace fell short of most trade estimates, according to data released by the National Oilseed Processors Association (NOPA) on Thursday. NOPA members, which handle about 95 percent of all soybeans processed in the United States, crushed 177.984 million bushels of soybeans last month. That was up from 155.158 million bushels in February but below the March 2020 crush of 181.374 million bushels, which was a record high for the month.

Apr 15 - European dairy prices hold steady as demand eases (IHSmarkit)

- Markets pause for breath after Q1 increases
- Start of Ramadan leads to drop in demand for milk powders
- US under-cutting EU on global dairy markets

The quiet tone has persisted on European dairy markets over the past week, with prices little changed on the week before. Prices are well above the level of April 2020 for all main dairy commodities, with whey powder trading at close to seven-year highs. But markets have paused for breath following a first quarter which saw the EU average price for butter rise by 19%, SMP by 12%, WMP by 18% and whey powder by 25%.

The start of Ramadan this week has led to a drop in demand for milk powder in particular from Middle Eastern and North African countries, while price-competitive US product is tending to undercut the EU on global SMP markets. At the same time, the reimposition of lockdown in several European countries over the past couple of weeks has also dampened overall consumer demand, notably for butter and cheese.

The butter market is said to be well-balanced, with production well matched with demand. The price has nudged up marginally on the French AgriMer exchange, up to EUR4,285 per tonne, but is unchanged on the Dutch PZ exchange, at EUR4,040 per tonne, and also at Kempten in Germany – where the values are stable at EUR3,890 per tonne for retail (packaged) butter and at EUR4,050 per tonne for industrial (bulk) butter.

For SMP, AgriMer has recorded a 1.0% price reduction week-on-week, down to EUR2,494 per tonne – but the Kempten price is up by 0.4%, at EUR2,525 per tonne, while the Dutch price Is unchanged at EUR2,530 per tonne. Prices for bulk SMP for animal feed have nudged upwards on both exchanges, emphasising the underlying firmness of the market.

Whole milk powder prices have fallen back quite markedly in the Netherlands – down 2.7% to EUR3,170 per tonne. But the French and German prices are both unchanged, at EUR3,253 and EUR3,250 per tonne, respectively.

Whey powder prices are similarly stable, with only the Kempten price showing any change on the previous week – up 1.0% to EUR1,010 per tonne.

Apr 15 - New zinc-fortified wheat set for global expansion to combat malnutrition 

Scientists at a leading global grains research institute expect to sharply ramp up new wheat varieties enriched with zinc that can boost the essential mineral for millions of poor people with deficient diets, the institute's head told Reuters. Martin Kropff, director general of the International Maize and Wheat Improvement Center (CIMMYT), said he expects the newly-developed high-zinc wheat to make up at least 80% of varieties distributed worldwide over the next ten years, up from about 9% currently.

Apr 15 - Palm-oil prices gain in early Asian trade ahead of cargo surveyor data on shipments for the first half of April from Malaysia, the second largest oil palm grower globally. Traders are expecting strong exports momentum in March to continue in April, while stronger soybean oil prices overnight also provide some support, says a Kuala Lumpur-based palm oil analyst. The data is due later Thursday. The benchmark contract for June delivery rises MYR41 to MYR3,771 a metric ton on the Bursa Malaysia Derivatives Exchange.

Apr 15 - Lean hog futures trading on the CME finished up 1.4% to $1.077 per pound. For hogs, momentum continues to come from China's ongoing struggles with a resurgent African swine fever -- even amid speculation that China's pork supply is swelling due to hog producers liquidating their existing supplies. "The reopening of the US economy, and swine flu fears in China have put a strong bid in the market that continues to grind higher," says Robert Yawger of Mizuho Securities USA. Meanwhile, live cattle futures fell 0.7% to $1.2005 per pound.

Apr 14 - How the Russian floating wheat export tax is calculated.

1. Here's how the Russian floating wheat export tax is calculated.
2. A trader has to report an export deal to the exchange. The price will be used in calculating the daily index if:
    a) the shipment period is within 60 days after the index calculation
    b) there are not more than 60 days and not less than 4 days before the index calculation.
3. I.e. trader A sells wheat on April 6 for June 1-15 delivery at $240/mt, it reports the deal to the exchange on April 8 and starting from April 8 or 9 the deal price will be included in the index calculation until June 16.
4. If there are no other deals the index will be $240 until June 16 implying a tax rate of $28 (0.7*($240-$200)).
5. Let’s assume trader B sells another wheat lot (same volume) for June 5-20 delivery at $250/mt on April 20 in addition to the above deal. The contract is registered on April 23 and starting from April 23/24 the price index will be $245.
6. Overall the system looks unpredictable and not transparent – big risks and additional costs for all market participants.

Apr 14 - South Korea’s MFG buys about 66,000 tonnes feed wheat - trade  

South Korea's Major Feedmill Group (MFG) purchased some 66,000 tonnes of animal feed wheat which can be sourced from optional origins in a tender on Tuesday, European traders said. The feed wheat was purchased in one consignment at an estimated $269.30 a tonne c&f plus a $1.50 a tonne surcharge for additional port unloading, they said.

Apr 14 - NOPA March U.S. soy crush seen at 179 million bushels - survey 

The U.S. soybean processing pace jumped in March following a smaller-than-expected crush the prior month, propelled in part by strong demand for vegetable oils to make biofuel, according to analysts polled ahead of a National Oilseed Processors Association (NOPA) report due Thursday. NOPA members, which handle about 95% of all soybeans processed in the United States, were estimated to have crushed 179.179 million bushels of soybeans in March, according to the average of estimates from 11 analysts.

Apr 14 - Familiar storyline in the cards for U.S. corn as focus turns to 2021-22 - Braun 

Market-watchers next month will be engulfed in next year’s supply and demand prospects as U.S. farmers seed the 2021 corn crop and the U.S. government publishes its first official estimates for 2021-22, numbers that are expected to show continued tightness in domestic corn inventory. The U.S. Department of Agriculture’s updated estimates on Friday dropped 2020-21 U.S. corn stocks-to-use to 9.2%, both equal to and the lowest since 2013-14. That ratio, which gauges both supply and demand, was seen at 10.3% last month.

Apr 13 - UK agri-exports to EU recover in February, still well below pre-Brexit levels (IHSmarkit)

    83% rise in agricultural exports to EU compared with January 2021
    UK exports to EU still 32% below 2020 monthly average
    EU seafood exports to EU 36% down on 2020 monthly average
    Meat products exports 45% below average for last year, dairy down 31%

- UK exports of agri-food products to the EU staged a recovery in February 2021 after the calamitous drop recorded in January – but still remained 22.2% by value below the level recorded in the same month last year, according to latest trade data.
- New figures published on Tuesday (13 April) by the UK Office for National Statistics show that UK exports to the EU27 of agricultural products (excluding beverages and tobacco) were worth a total of £573 million in February 2021.
- This is an increase of 83% compared with January (a revised figure of £313m), when exports plummeted primarily because of disruptions caused by the UK’s departure from the EU single market.
- But sales are well down on the £737m exported in the same month in 2020, and still 32% below the 2020 monthly average of £842.6m.

Apr 13 - Nervous North American farmers set to 'seed in faith' into parched soils 

Fields across the Canadian Prairies and the U.S. Northern Plains are among the driest on record, raising production risks in one of the world's key growing regions for canola and spring wheat. As planting season begins, the dusty soils generate fears that seeds will fail to germinate or yield smaller crops in a year when demand for canola already far outstrips supply. Unusually strong wheat exports to China for animal feed have also lowered global supplies of the main ingredient in bread and pasta. 

Apr 13 - China's Q1 soybean, grains imports surge on strong demand 

China's imports of soybeans, as well as grains like corn and wheat, soared in the first quarter, boosted by strong demand from the livestock sector, data from customs showed on Tuesday. Soybean imports almost doubled in March alone year-on-year, according to customs data, as cargoes of beans from top exporter Brazil cleared customs after delays. Meanwhile first-quarter corn and wheat shipments jumped on elevated domestic corn prices amid a supply shortage, the data showed.

Apr 13 - South Korea's MFG tenders for up to 70,000 tonnes feed wheat  

South Korea's Major Feedmill Group (MFG) has issued an international tender to purchase up to 70,000 tonnes of animal feed wheat, European traders said on Tuesday. The deadline for submission of price offers is also Tuesday, April 13, they said. 

 

 

Apr 12 - Bayer, Corteva in 'two-dog battle' over U.S. soy market 

Bayer AG is launching a new genetically modified soybean in the United States, striking back against rival Corteva Inc in a bid to retain its dominant position supplying seeds to the $40 billion U.S. soy industry. Billions of dollars are on the table for companies producing a growing variety of seeds for soybeans, the top U.S. export crop, as farmers expand acreage this year due to soaring crop prices.

Apr 12 - U.S. says strong demand to cut corn supply; prices hit highest since June 2013 

U.S. corn supplies will shrink by more than previously forecast due to rising demand from the ethanol, livestock feed and export sectors, the U.S. Agriculture Department said on Friday. The supply outlook sparked a rally that pushed corn futures to their highest in nearly eight years, and heightened focus on the next U.S. crop currently being planted to rebuild supplies.

Apr 12 - Ukraine wheat export prices down amid fall in Russian prices, crop outlook 

Ukrainian wheat export prices have decreased by a further $7 a tonne over the past week amid a downward trend in Russian export prices and a positive outlook for the 2021 wheat harvest, APK-Inform agriculture consultancy said on Sunday. The Ukrainian government has said good weather is likely to help farmers increase their grain crop to at least 75 million tonnes this year from about 65 million tonnes in 2020. 

Apr 12 - Egypt's GASC buys 20,000 tonnes of bottled vegetable oils 

Egypt's state grains buyer, the General Authority for Supply Commodities, on Monday bought 20,000 tonnes of refined bottled vegetable oils, the supply ministry said in a statement.  The purchase was made up of bottled soyoil and sunflower oil, of which 10,000 tonnes would be delivered May 1-31 and 10,000 for June 1-30.

 

Apr 09 - Sharp rise in Indian peanut crop expected (IHSmarkit)

- 8% increase in production and planted area.
- 36% growth in carry-over stocks.

The 2021-22 peanut crop may reach 6.7 million tonnes, 8% more year-on-year, on 5.2 mln hectares, 8% more y-o-y, assuming that 2021 monsoon rainfalls (June-September) are “near-normal”, according to the USDA. However, the 2020-21 carry-over stocks are at a minimum level of 168,000 tonnes, 36% less, due to strong exports to China, where demand for peanut oil is at record levels.

The 2020-21 Indian exports are expected to total 900,000 tonnes, 12.5% more and a record.

As a result, the Indian government has not approved a minimum support peanut price for producers in the 2021-22 season, after being fixed at INR5,275 per (in-shell) quintal (USD70.8/quintal), 4% more y-o-y. in the current year, after consumer oil prices have soared, as IHS Markit reported on 6 April.

Apr 09 - CBOT corn futures jumps 4% as ethanol, export confidence grows

Chicago corn futures gained up to 4% Thursday as a combination of buying from ethanol producers and after the USDA revealed strong net sales figures, driving investors to buy prompt contracts, trade sources said.

The front month May contract added almost 22 cents at one point, climbing to $5.83/bu at one point, up 4% on the overnight settle, before easing slightly as the end of day approached, after the USDA put US corn net sales for the 2020/21 marketing year at 66.4 million mt.

The agency has forecast exports of 66 million mt for the full marketing year, but news that net sales have already surpassed that figure with a third of the marketing year still to go teed up expectations of a major revision of figures when the monthly Wasde report is released on Friday.

“Fundamentally we can say that exports are now to a point where the USDA should very seriously consider increasing their target as sales keep up and shipments are going out,” Ted Seifried of Zaner Ag Hedge told Agricensus.

At 66 million mt, the US was already on course for a record-breaking year but the pace of buying from China in particular has left analysts to already revise their expectations for 2020/21 corn exports higher, with some calling for as much as 72 million mt.

On top of that, growing confidence in the country’s ethanol sector, after a prolonged period of struggle under the administration of President Trump, is also fuelling the upward momentum.

“The margin picture is definitely better than anybody could have predicted even six weeks ago, so we’ve clearly pushed a few more guys into the mindset of ‘I need to get some June/July corn bought,” Kelly Herrick of Advance Trading noted.

With around 40% of a typical US corn harvest used to produce ethanol, the apparent rosy outlook for the upcoming peak driving season has raised expectations of a further recovery in production after lockdowns severely dented driving demand.

Finally, fears over Brazil’s weather damaging the outlook for the country’s vital second corn crop mingled with rumours that Chinese trade sources had made enquiries over buying additional volumes of corn to provide a potently supportive cocktail.

“I have also heard the bit about ethanol producers getting more aggressive on bids because they feel more confident in the summer driving season,” Seifried said, while the China rumours – a regular part of the industry currently – have proved difficult to confirm.

Apr 09 - Argentine farmers, facing peso uncertainty, hoard soy despite high prices 

Argentine farmers are shrugging off high soy prices and hanging onto all the beans they can this season in a bid to avoid exposure to the country's anemic peso currency, even as rival growers in Brazil and the United States rush to sell. The trend hits just as Argentina needs export revenue to help dig itself out of recession while COVID-19 cases spike and uncertainty abounds ahead of October congressional elections. Farmers fret that the vote might set the stage for increased government intervention in the agricultural markets.

Apr 09 - USDA to expand forecasts on soyoil use in biofuels in May crop report 

The U.S. Department of Agriculture (USDA) will alter how it reports soybean oil use by biofuels producers beginning with its monthly World Agriculture Supply & Demand Estimates (WASDE) report in May, the USDA announced on Thursday, confirming an earlier Reuters report. The USDA also said it will break out soybean meal supply and demand for China in its global table for the animal feed ingredient in what could help the market gauge whether the top soybean importer is crushing beans or stockpiling them.

Apr 09 - Taiwan flour mills buy 96,645 tonnes of wheat from U.S. 

The Taiwan Flour Millers' Association bought an estimated 96,645 tonnes of milling wheat to be sourced from the United States in a tender which closed on Thursday, European traders said. The wheat was bought in two consignments comprising various wheat types for shipment from the U.S. Pacific Northwest coast in May and June.

Apr 09 - South Korea buys 46,229 tonnes of rice in tender - trade 

South Korea's state-backed Agro-Fisheries & Food Trade Corp purchased an estimated 46,229 tonnes of rice in an international tender for up to 208,217 tonnes which closed on March 25, European traders said on Friday. The purchase is expected to be sourced from Thailand, Vietnam and China.

Apr 08 - USDA to expand forecasts on soyoil use in biofuels in May crop report 

The U.S. Department of Agriculture (USDA) will alter how it reports soybean oil use by biofuels producers beginning with its monthly World Agriculture Supply & Demand Estimates (WASDE) report in May, a USDA spokesperson told Reuters on Wednesday. The change to the closely watched report, viewed as the global gold standard in agriculture data, comes amid rising demand for vegetable oils from producers of renewable diesel, a clean burning fuel made from soy and other fats and oils.

Apr 07 - Strategie Grains cuts EU rapeseed crop forecast again 

Strategie Grains has lowered its forecast for the 2021 rapeseed harvest in the EU for the second month in a row and is monitoring the risk of localised damage to crops from wintry weather this week, the consultancy said on Tuesday. In a monthly oilseed report, the French firm reduced its outlook for this year's rapeseed harvest in the 27-country European Union to 16.8 million tonnes from 17.05 million forecast last month. 

Apr 07 - Brazil's second corn at risk after record soy crop – Agroconsult 

Brazil's second corn yields will fall by an estimated 3.6% this year, as most growers were forced to sow the cereal outside the ideal climate window after delays in the soy harvest, according to a presentation by agribusiness consultancy Agroconsult on Tuesday. If the projection is confirmed, second corn growers will harvest an average of 91.6 60-kg bags per hectare in 2021, Agroconsult said.

Apr 07 - While Incitec Pivot is grappling with further disruptions at its Waggaman ammonia plant, the stock is enjoying a tailwind from firming fertilizer prices, says UBS, as it raises its target to A$3.05/share from A$2.85/share. The bank says plant reliability is certainly back in focus after "another disappointing manufacturing update." However, favorable agricultural conditions and ongoing strength in soft commodity prices have supported a rally in global fertilizer prices, with ammonia prices having doubled year to date, it says. Incitec Pivot last traded at A$2.68/share.

Apr 07 - Global dairy commodity prices were stable overall in the latest auction, consolidating large gains in March, as demand from China remained strong. Rabobank says some buyers might have taken a step back because of high prices, but buying appetite is still much stronger for the time of yhear. "While the total volume of dairy products bought was less than last month, the volumes were significantly higher compared to the first auction in April 2020 and also April 2018 and April 2017," it says. Meanwhile, Westpac says the auction result is consistent with its 2020-21 milk price forecast of NZ$7.90/kg milk solids for New Zealand farmers.

Apr 07 - California leafy greens growers should view a recurrent E. coli strain as a likely threat and do more to prevent its spread through the US food supply, according to the FDA. In a report on its investigation of an E. coli outbreak tied to leafy greens last year, the agency says the same strain has now been linked to numerous foodborne illness outbreaks and should be considered a "reasonably foreseeable hazard" in California's Salinas Valley. FDA advised growers on steps to take to determine how their produce is being contaminated and laid out additional work it would do as part of a plan unveiled last year to try to curb what have become regular outbreaks in leafy greens.

Apr 07 - Livestock futures trading close the day slightly higher - with live cattle futures finishing up 0.2% to $1.24625 per pound and lean hog futures virtually unchanged at $1.05625 per pound. Livestock producers are monitoring the weather to see if drought conditions ease up and allow for more grazing to take place in lieu of procuring animal feed. "Drought impacted pastures in this region a year ago causing an elevated need for feed usage," says Karl Setzer of AgriVisor. "Hopes are rains will benefit the pastures and less feeding will be needed."

Apr 06 - UK dairy market firm in March

UK wholesale dairy prices have firmed in March on the back of good demand. Milk flows have started their seasonal increase, which has tempered demand with buyers expecting ample supplies over the coming weeks. Prices have therefore stabilised at the end of the month for most products, said the AHDB.

Trade frictions remain an issue for some exporters, limiting the ability to achieve higher returns available on EU markets, particularly for fresh product. Bulk cream prices climbed steadily through the period thanks to firm butter prices, which have rose beyond the EUR4,000/tonne threshold for the first time since 2019.

UK wholesale cream average in March surged by more than 10% to GBP1,471/tonne. The surge was driven by the first three weeks of the month, when prices rose from the mid-GBP1300s (per tonne) to the mid-GBP1500s. Export sales achieved premiums of around BP50-100 depending on exchange rates and whether product went to Northern Ireland or the European continent.

The price increases have, however, stalled at the end of March in line with a slowdown in butter demand and seasonally rising milk supplies.

 

Apr 06 - Ukraine grain export prices down amid weak demand, good crop outlook 

Ukrainian wheat export prices have lost another $9 a tonne in the past week due to a fall in demand and good prospects for the 2021 wheat harvest, APK-Inform agriculture consultancy said on Monday. The government has said good weather is likely to help farmers increase their grain crop to at least 75 million tonnes this year from about 65 million tonnes in 2020. 

Apr 06 - Brazil harvests 78% of soybean crop, second corn plantings finished, consultancy says 

Brazilian farmers had harvested 78% of the area planted with the 2020/2021 soybean crop as of last Thursday, compared with 83% at the same point last year, agribusiness consultancy AgRural said on Monday. As the soybean season draws to a close, Brazilian farmers were able to finish planting their second corn crop, as much of it is grown in the same areas as the oilseeds, AgRural said. 

Apr 06 - U.S. winter wheat rated 53% good to excellent; corn 2% planted -USDA 

The U.S. Agriculture Department said on Monday that 53% of the U.S. winter wheat crop was rated good-to-excellent, while planting of the U.S. corn crop was 2% complete. The ratings, the government's first assessment of conditions since the crop emerged from its winter dormancy, were in line with market expectations for wheat.

Apr 05 - China releases rice for feed in face of high corn prices, sources say 

China released 2 million tonnes of rice from state reserves for sale to feed producers this week to bolster supplies of feed grains amid elevated corn prices, three sources close to the matter said. Corn prices hit record highs in China earlier this year as dwindling stocks and reduced output raised concerns over supplies. 

Apr 05 - African swine fever inflicts renewed toll on northern China's hog herd 

A wave of African swine fever outbreaks this year has wiped out at least 20% of the breeding herd in northern China, industry sources and analysts said, exceeding expected losses and raising fears about the potential for further impact in the south. The estimates point to the extent of the disease's resurgence in the first quarter of 2021 after more than a year of declining outbreaks, heralding a significant setback to China's efforts to replenish its hog herds after African swine fever reached the country in August 2018 and wiped out 50% of the country's pigs within a year.

Apr 05 - High prices lift Argentina's March grains exports revenue to 18-year high 

Argentina brought in $2.77 billion from agricultural exports in March, the CIARA-CEC chamber of export companies said on Thursday, as high grains prices pushed revenue from international shipments to an 18-year high. The chamber represents companies accounting for 40% of Argentina's total exports. The sector is Argentina's biggest source of much needed export dollars as the government tries to stabilize its economy as it struggles to exit a three-year recession that has been exacerbated by the COVID-19 pandemic.

Apr 05 - Algeria buys about 500,000 tonnes milling wheat in tender -traders 

Algeria’s state grains agency OAIC has purchased about 500,000 tonnes of optional-origin milling wheat in an international tender that closed on Wednesday, European traders said on Thursday. Trade estimates were between 500,000 and 550,000 tonnes, above initial estimates early Wednesday evening. One estimate was 580,000 tonnes.

Apr 05 - Palm Oil Rises as Ramadan Fuels Demand.
- Palm oil prices rise in early trade, thanks to strong demand ahead of the Ramadan season in May, CGS-CIMB says. Exports of the oil have risen due to rising demand from India and because it has been trading at a discount to rival oils, the brokerage says. The benchmark contract for June delivery rises MYR30 to MYR3,767 a metric ton on the Bursa Malaysia Derivatives Exchange.

Apr 05 - Although trading on the CBOT is closed today in observance of Good Friday, other global markets remain open.
"Soybean meal and oil on the Dalian exchange remain volatile as the market attempts to price in the recent USDA report," says Darin Friedrichs of StoneX. Chinese markets are going to be closed April 5 in observance of a public holiday. Soy prices have been a focus, in response to new outbreaks of African swine fever affecting the country's hog population.

Apr 05 - Thailand's agricultural exports look set to remain strong on higher prices and demand from China, Maybank Kim Eng says. The brokerage expects prices for agri products, including rubber and tapioca, to remain elevated, even though volume may dip after the main cropping season and as rubber tapping slows due to the winter season. Potential winners from current dynamics include Sri Trang Agro-Industry--whose shares are up 74% this year--and rubber-glove maker Sri Trang Glove, Maybank says. Possible losers include frozen seafood and poultry companies facing weak demand or logistics disruption, including Thai Union and Charoen Pokphand Foods, the brokerage adds.

Apr 01 - Dairy Price Update: UK market firm in March (IHSmarkit)
  UK wholesale dairy prices have firmed in March on the back of good demand, with particularly high surges seen in bulk cream and butter.
Milk flows have started their seasonal increase in the UK, which has tempered demand with buyers expecting ample supplies over the coming weeks, which stabilised prices at the end of the month for most products, said the AHDB.
Trade frictions remain an issue for some exporters, limiting the ability to achieve the higher prices available on EU markets, particularly for fresh product.
  Bulk cream prices climbed steadily through the period thanks to firm butter prices. UK wholesale cream average in March surged by more than 10% to GBP1,471/tonne. The surge was driven by the first three weeks of the moth, when prices rose from the mid-GBP1300s (per tonne) to the mid-GBP1500s. Export sales achieved premiums of around BP50-100 depending on exchange rates and whether product went to Northern Ireland or the European continent.
  The price increases have, however, stalled at the end of March in line with a slowdown in butter demand and seasonally rising milk supplies.
Butter saw a 9% rise to GBP3,430/tonne, driven by a shortage of fat in Europe. Demand slowed in the last week of March as buyer demand subdued. In addition, some hesitation has crept into the market with announcements of new lockdowns in some of the EU, stalling the recovery of foodservice.
Demand for UK-origin SMP is firm, mirroring the trend seen in neighbouring EU. The main factr supporting the rise in power prices is the robust demand coming from the Far East. UK SMP average price increased by 1.5% to GBP1,200/tonne.

Apr 01 - Dairy Price Update: Polish wholesale prices down (IHSmarkit)
  Polish prices saw decreases over the past week in main exported commodities, such as butter and milk powders.
According to the Central Statistical Office, the price of milk in February increased by over 8.6% y/y to PLN149.2/100kg (EUR32/100 kg). The purchase price of milk was 0.1% lower than in January. This reflects a potential upward trend for Polish milk producers, however, with the nearing of the spring flush period, prices are expected to fall back.
  Compared to the EU-wide average milk price, the Polish milk price is still falling behind: the bloc’s February average fell 0.6% m/m to EUR34.7/100 kg.
  On wholesale markets, Polish butter fell 1% to PLN17,310/tonne (EUR3,722/tonne), still giving the country a competitive advantage over neighbouring Germany, where prices this week are averaging EUR4,050/tonne.
  Despite a reportedly strong SMP market, Poland’s SMP fell 2% to PLN10,390/tonne (EUR2,234/tonne), a price which is currently closer to Germany’s feed-grade SMP (EUR2,380/tonne) than food grade powder (EUR2,515/tonne).

Apr 01 - China soybean stocks at 10-mth low as Brazilian cargo delays weigh
Soybean stocks in China fell for the fourth consecutive week to hit the lowest level since May as delays to cargo loadings in Brazil weighed on supply.
Commercial soybean stocks slid 390,000 mt to 4.66 million mt last week, down 1.28 million mt from the same point last month but still up 1.41 million mt year-on-year, according to data from China’s National Grain and Oil Information Centre (CNGOIC) on Thursday.
“Soybean [vessel] landings at ports were still low, soybean stocks continued to fall… it is expected that the stocks level will remain in a downward trend,” said CNGOIC.
Lower bean stocks also dampened crushers’ operation rate with total soybean crush volume down 10,000 mt to 1.56 million mt last week.
Despite lower crush volume, soymeal stocks flatlined at 760,000 mt as procurement from feed companies slowed. Meanwhile, soyoil stocks fell 60,000 mt to 680,000 mt, down 190,000 month-on-month and 590,000 lower than the same point last year.

Apr 01 - Coronavirus costs climb as Europe's farmers seek seasonal workers 

Fruit and vegetable harvests are underway in western Europe with seasonal workers gathering crops in top producer Spain, but costs are rising as farmers fear a third wave of COVID-19 might cause a repeat of 2020's damaging disruptions in labour supply. Harvests rely heavily on workers from Africa and eastern Europe, but many couldn't travel a year ago as borders closed in the first wave of the pandemic. Shortages of key goods appeared in supermarkets while prices rose as consumers hoarded.

Apr 01 - U.S. farmers to plant fewer corn, soy acres than expected -USDA 

The U.S. Department of Agriculture's forecasts for corn and soybean plantings on Wednesday fell below analyst expectations, sending futures prices for both commodities up by their daily limits. Smaller-than-expected plantings of the two main cash crops in the United States would heighten concerns about global food and animal feed supplies after importers and domestic processors loaded up on grain and oilseeds earlier this year. The United States is the world's biggest corn exporter and the No. 2 soybean supplier.

Apr 01 - Pakistan lifts ban on cotton imports from arch-rival India as prices rise 

Pakistan lifted a nearly two-year ban on sugar and cotton imports from arch-rival India on Wednesday, the finance minister said, a step towards reviving suspended trade between the two nuclear-armed neighbours. Pakistan's Economic Coordination Council (ECC), a top decision-making body, allowed the private sector to import 0.5 million tonnes of white sugar as Islamabad tries to keep soaring domestic prices in check.

 

Mar 31 - Soybeans take unusual dive on trade jitters ahead of USDA data - Braun
Price action in Chicago corn and soybean futures is often muted in the final lead-up to big government reports, but Tuesday marked soybeans’ steepest drop on USDA's "planting intentions eve" since 2008. That indicates a large amount of uncertainty ahead of Wednesday’s reports from the U.S. Department of Agriculture, and speculators are especially vulnerable as they have held on to historically bullish grain and oilseed bets since late last year. The end-of-March USDA data is known to be a big market mover.

Mar 31 - Suez Canal works to clear backlog as shipping convoys resume
The Suez Canal expects 140 ships to pass on Tuesday after the freeing of a container ship stranded for nearly a week allowed it to reopen, but experts warned that disruptions to global shipping and at ports could take months to resolve.  The blockage threw global supply chains into disarray, threatening costly delays for firms already wrestling with COVID-19 restrictions, and nearly doubled rates for oil product tankers.

Mar 31 - Bunge bought soy from biggest destroyers of Brazilian savanna in 2020
Global commodities trader Bunge bought soybeans from farms responsible for deforesting an area twice as large as Manhattan in Brazil's Cerrado savanna in 2020, the most among the world's major trading firms, a report said on Tuesday. Brazil's SLC Agricola, which sells to Bunge and others, was the soy producer responsible for the most deforestation. The company cleared 101.5 square km (39 square miles) - according to an analysis by Chain Reaction Research, a consortium of nongovernment organizations.

Mar 31 - EU sees pork exports staying high on disease fallout in Asia
Pork exports from the European Union this year are expected to remain close to a record level seen in 2020 as Asian countries continue to feel the impact of a pig disease epidemic, the European Commission said on Tuesday. The EU has seen its shipments rise sharply in the past two years as African swine fever has decimated pig herds in China. The bloc has also managed to limit the impact of an ASF outbreak in Germany, with countries like Spain exporting more. 

Mar 31 - Brazil kicks off survey of private rice, coffee and wheat stocks
Brazil's food supply and statistics agency Conab has launched a survey to gauge the size of the country's private stocks of rice, coffee and wheat, according to a statement on Tuesday, as Latin America's largest economy grapples with rising food inflation. It will the first time that the government collects data on private wheat stocks based on information provided by both producers and millers, Conab said. 

Mar 31 - Nearly a fifth of Ukrainian farmers plan to cut 2021 corn sowing area - survey
At least 18% of Ukrainian farmers plan to reduce the area sown for corn in 2021 due to drought last summer, while 13% could increase acreage, a survey by agriculture consultancy APK-Inform showed on Tuesday. Corn is Ukraine's leading grain export and the country is forecast to supply around 24 million tonnes of corn in the 2020/21 season.

Mar 31 - Bayer to launch sale of 2 bln eur pest control unit BES this summer - sources
German chemicals group Bayer is preparing to launch an auction for its pest control unit Bayer Environmental Science (BES) seen worth more than 2 billion euros ($2.35 billion) in the summer, people close to the matter said. The agrichemicals giant, which continues to deleverage in the wake of its $66 billion acquisition of U.S. peer Monsanto in 2016, is working with Bank of America on the BES divestiture, the people said. 

Mar 31 - China's WH Group sees higher hog prices after use of unapproved vaccines
Use of illegal African swine fever vaccines by some Chinese hog producers last year reduced output of hogs and will support prices in 2021, an executive from leading pork processor WH Group said on Tuesday, spurring growth in imports of cheaper meats. China has been trying to rebuild its massive hog herd since the deadly African swine fever virus ravaged the country's farms during 2018 and 2019.

Mar 30 - Traffic in Suez Canal resumes after stranded ship refloated
Shipping was on the move again late on Monday in Egypt's Suez Canal after tugs refloated a giant container ship which had been blocking the channel for almost a week, causing a huge build-up of vessels around the waterway. With the 400-metre-long (430-yard) Ever Given dislodged, 113 ships were expected to transit the canal in both directions by early Tuesday morning, Suez Canal Authority (SCA) chairman Osama Rabie told reporters. 

Mar 30 - Is the market on the right track for U.S. corn, soy plantings? - Braun
Greatly improved profitability levels have lifted U.S. farmers’ enthusiasm for the 2021 planting season, but market watchers’ anticipation of U.S. government planting numbers due on Wednesday has reached a fever pitch, and the trade estimates in particular deserve some attention. Chicago corn and soybean prices have remained relatively stagnant in recent weeks compared against the steep rally in the last few months of 2020. Wednesday’s survey-based acreage numbers from the U.S. Department of Agriculture, along with quarterly grain stocks, are expected to provide clearer market direction.

Mar 30 - March rains to help Argentine wheat/barley sowing, but too late to restore soy/corn yields
Hard late-March rains in Argentina have set the stage for smooth wheat and barley sowing, but the storms arrived too late to help corn and soy yields in areas that had been pounded by months of dry weather, farmers and crop analysts said on Monday. The South American grains powerhouse is the world's No. 3 corn exporter and top supplier of soymeal livestock feed, used to fatten hogs and poultry from Europe to Southeast Asia.

Mar 30 - Brazil's second corn sowing nearly complete; soy harvesting at 71% of area - AgRural
The sowing of Brazil's second corn crop reached 98% of the estimated area for the Center-South of the country through last Thursday, according to a report by AgRural on Monday. Despite a delay in plantings that caused many farmers to sow the cereal outside the ideal climate window, Brazil's second corn crop is developing well across the region, the consultancy said.

Mar 30 - U.S. farmers prep for massive corn acreage despite soy rally
A 45% rally in soybean prices in 11 months was not enough to convince South Dakota farmer DuWayne Bosse to give up any corn acreage on his farm this spring. "For our farm, we are looking at maxing out corn acres," said Bosse, who added that soybean futures for the next crop would have to rally another 9% to $13.25 a bushel to make switching up his seeding plans worthwhile.

Mar 30 - EU 2020/21 soybean imports at 11.02 mln T by March 28, rapeseed 4.94 mln T
European Union soybean imports in the 2020/21 season that started last July had reached 11.02 million tonnes by March 28, data published by the European Commission showed on Monday. That compared with 10.61 million tonnes cleared by the same week last season, the data showed. Since Jan. 1, the European Commission's data has covered the EU's 27 countries only, whereas previous figures up to Dec. 31 covered both the EU-27 and Britain.

Mar 30 - Argentina suspends 15 beef exporters for evading state controls 
Argentina said on Monday it had suspended 15 meat exporters for dodging industry regulations, derailing at least 40 tonnes of shipments from one of the world's best-known beef producers. The country's agriculture ministry said in a statement it had uncovered several meat export operations that had undercut competitors and evaded taxes by failing to properly register their businesses with the state.

Mar 30 - Ukraine starts 2021 spring grain sowing
Farms from Ukraine's southern and eastern regions have started the 2021 spring sowing, seeding the first 106,300 hectares of wheat, barley, peas and oats as of March 25, the economy ministry said on Monday. The 2021 sowing campaign started a few weeks later due to lingering cold weather in most of the country.

Mar 29 - Suez Canal Authority says stranded ship partially refloated
A massive container ship blocking Egypt's Suez Canal for nearly a week has been partially refloated, the Suez Canal Authority (SCA) said, raising hopes the busy waterway will soon be reopened. The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting shipping traffic on the shortest shipping route between Europe and Asia.

Mar 29 - Market braces for USDA grain stocks amid trust issues with past data - Braun
U.S. quarterly stock data from the Department of Agriculture has long been known to create waves in the market, but the recent reports have felt tsunami-like due to some unusually large and unexpected adjustments to previous numbers. Wednesday could be a volatile trading day as the quarterly stocks data will be published along with U.S. planting intentions, which are highly anticipated this year since the last two corn and soybean harvests came up short of expectations. USDA will publish the reports on Wednesday at noon EDT (1600 GMT).

Mar 29 - China branch of cotton trade body finds no forced labour in Xinjiang
The China branch of the cotton trade body Better Cotton Initiative (BCI) said on Friday it had not found signs of forced labour related to cotton production in Xinjiang. The comments come as a number of overseas retailers face a public backlash from Chinese consumers who circulated statements from the brands on social media announcing they will cease sourcing from Xinjiang. BCI counts many of the brands in question, including H&M, Nike, and Adidas, as members.

Mar 29 - Funds forge most bullish CBOT corn view since February 2011 - Braun
Speculators have not significantly altered views in Chicago-traded grains and oilseeds in recent weeks in anticipation of Wednesday’s critical U.S. government figures, but investors’ enthusiasm for corn has steadily built to the strongest levels in a decade. In the week ended March 23, money managers increased their net long position in CBOT corn futures and options to 388,175 from 370,900 a week earlier, establishing their most bullish view on the yellow grain since February 2011. That went against trade expectations for fund selling during the period.

Mar 29 - Taiwan allows Cargill to repatriate $2 bln frozen in currency speculation case - sources
Taiwan's central bank has allowed U.S.-based commodities house Cargill Ltd to repatriate around $2 billion that had been frozen as part of an investigation into currency manipulation, four people with direct knowledge told Reuters. The central bank last month punished four foreign banks, including Deutsche Bank for helping grains firms speculate in the deliverable forwards foreign exchange market, as it moved to slow the Taiwan dollar's rise.

Mar 29 - Malaysia says its red palm oil can enter China
China, the world's second-largest palm oil buyer, has allowed the import of red palm oil from Malaysia, the Southeast Asian nation said on Monday. China implemented new standards starting March 1 that allowed unrestricted imports of premium palm oil from Malaysia, the Malaysian Palm Oil Board (MPOB) said in a statement.

Mar 29 - Russia preparing formula-based export tax on sunflower oil for 1 year
Russia plans to impose an export tax on sunflower oil for one year from Sept. 1 set at 70% of the difference between its indicative price per tonne and $1,000, the economy and agriculture ministries said in a statement on Saturday. Russia has imposed several export taxes for grains and sunseeds, among other measures, since December in its battle to tame rising food inflation amid the coronavirus pandemic.

Mar 29 - Ukraine raises barley export forecast, revises wheat, barley harvest data
Ukraine's economy ministry has slightly increased its forecast for Ukrainian barley exports in the 2020/21 July-June season to 4 million tonnes from 3.815 million a month earlier, local traders union said late on Friday. The upward revision caused an increase in the overall grain exports to 45.67 million tonnes from the previous forecast of 45.42 million tonnes.

Mar 29 - Bayer's Monsanto, India's NSL settle long-running GM cotton seed dispute
Bayer AG said on Friday it had reached an "amicable settlement" in its Monsanto unit's long-running intellectual property dispute with Indian seed maker Nuziveedu Seeds Ltd (NSL) over genetically modified cotton seeds. In a statement to Reuters, the German company said it had resolved "outstanding issues and differences" over the dispute, giving no further details. Two sources familiar with the matter said the companies had reached a legal settlement that would end all ongoing litigation.

Mar 29 - U.S. says Mexico plan to ban GMO corn imports does not apply to animal feed
U.S. Agriculture Secretary Tom Vilsack said on Friday that a Mexican plan to ban imports of genetically modified (GMO) corn would apply to grain used for human food products, not livestock feed, based on recent talks he had with Mexican Agriculture Secretary Victor Villalobos Arambula. Vilsack said limiting the ban to food products makes a big difference to U.S. farmers, who have long relied on Mexico as a top export market.

Mar 26 - Suez blockage sets shipping rates racing, oil and gas tankers diverted away
Reeling from the blockage in the Suez Canal, shipping rates for oil product tankers have nearly doubled this week, and several vessels were diverted away from the vital waterway as a giant container ship remained wedged between both banks. The 400-metres long Ever Given has been stuck in the canal since Tuesday and efforts are under way to free the vessel although the process may take weeks amid bad weather.

Mar 26 - IGC sees record global grain production in 2021/22 season
The International Grains Council (IGC) on Thursday forecast global grain production would climb to a record 2.287 billion tonnes in the 2021/22 season, but expects the larger supply to be entirely absorbed by higher consumption. In its first full assessment for the 2021/22 season, the inter-governmental body projected a balanced market, with stocks at the end of the period seen at 609 million tonnes, unchanged from a year earlier.

Mar 26 - Louis Dreyfus profits rebound as new investor set to enter
Louis Dreyfus Company (LDC) said its profits rebounded last year, supported by robust food demand and rising prices during the COVID-19 pandemic, in a further financial boost to the family-owned firm after a deal to bring in a new shareholder. The 170-year-old global merchant, controlled by Margarita Louis-Dreyfus, ended a long hunt for an investor in November by agreeing to sell a 45% stake to Abu Dhabi investment firm ADQ.

Mar 26 - Recent rains in Argentina help stop drought-related losses - exchange
Rains over recent days in Argentina have come in time to prevent further losses in 2020/21 soybean yields, the Buenos Aires Grains Exchange said on Thursday, two weeks after it cut the season's crop estimate due to months of dry weather. Soy is the country's main cash crop. Argentina is the world's top exporter of soymeal livestock feed, used to fatten hogs and poultry from Europe to Southeast Asia. The exchange earlier this month cut its 2020/21 harvest forecast to 44 million tonnes from a previous estimate of 46 million tonnes.

Mar 26 - China stops some Australian hay imports - Global Times
Some Australian hay suppliers have not received permits to export to China, the Global Times reported late on Thursday citing Chinese industry sources, in the latest escalation of trade tensions between the two countries. In a separate report on Wednesday, ABC News said Australia's $160-million hay export market to China could be the latest casualty in the ongoing trade tensions, with 28 Australian hay exporters to China failing to get their expired permits renewed since the end of February.

Mar 26 - Russia preparing export taxes on sunflower seeds, sunoil - ministry
Russia's economy ministry will soon propose that the government impose a restrictive export tax on sunflower seeds from July 1 and a formula-based export tax on sunflower oil from September 1, the minister said on Thursday. Russia has imposed several export taxes for grain, sunseeds among other measures since December in its battle to tame rising food inflation amid the coronavirus pandemic.

Mar 26 - Indonesia weather agency sees delayed arrival of dry season in 2021
Indonesia's weather agency has predicted a delayed arrival of the dry season this year with La Nina weather conditions seen lasting until May in most parts of the country, with a risk of extreme wet weather in some regions. Some part of Sumatra, Java, Sulawesi islands, as well as Papua, should start seeing a transition into the dry season in May, while some regions on the island of Borneo may only see the dry season start in June, Indonesia's Meteorology and Geophysics agency (BMKG) said in a statement late on Thursday.

Mar 26 - U.S. EIA to expand biofuels, feedstock data in monthly report
The Energy Information Administration said on Thursday it will expand biofuels data in its monthly report to account for the growth in U.S. production of renewable fuels. Changes in the next report to be released on March 31 will include expanded coverage of production capacities for biodiesel, fuel alcohol and renewable fuels, the statistical arm of the U.S. Department of Energy said in a release to Reuters on Thursday. It will cover data for January. 

Mar 26 - Brazil meatpacker JBS positive on China meat imports outlook
Brazilian meatpacker JBS SA anticipates strong demand for meat this year from China as the Asian country's pork herd is still recovering from an outbreak of African swine fever which disrupted domestic production. JBS executives, speaking on a conference call after the company published results, said it was not entirely clear when China would be able to fully recover its herd, meaning the country will continue to rely on food imports. 

Mar 26 - British meat, seafood exports to EU recovered in Feb - govt official
Britain's meat and seafood exports to the European Union recovered in February from the January slump that followed the country's exit from the EU's single market and customs union, a government official said on Thursday, citing preliminary data. Additional checks and paperwork for British exports since the end of the Brexit transition period on Dec. 31 have led to delays and crippling costs for many businesses, putting mounting pressure on the conservative government that ushered in Brexit to find solutions.

Mar 25 - Tugs resume effort to clear Suez ship blockage; traffic jam builds
Efforts to dislodge a 400-metre long container vessel that has choked traffic along the Suez Canal resumed at high tide on Thursday, with five tugs working to drag the vessel to deeper water, according to ship-tracking data. The Ever Given vessel ran aground diagonally across the single-lane stretch of the southern canal on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement.

Mar 25 - Global edible oil prices near their peak, but retreat may be slow - analysts
Global edible oil prices are nearing their peak but may be slow to decline to previous levels due to low stocks, a slow recovery in output and higher global use in biofuel production, leading analysts said on Wednesday. Major vegetable oil prices such as palm oil and soybean oil have likely already peaked at multi-year highs in 2021, lifted by a cocktail of production hiccups, recovering food consumption and an upbeat outlook for biofuel demand, leading industry analysts said at the Virtual Palm and Lauric Oils Price Outlook Conference.

Mar 25 - IKAR raises forecast for Russia's 2021 wheat crop
Russian agriculture consultancy IKAR said on Thursday that it had raised its forecast for Russia's 2021 wheat crop to 79.8 million tonnes from a previously expected 78 million tonnes. The forecast was raised due to favourable weather in Russia's southern grain producing regions, IKAR added.

Mar 25 - Australian wheat farmers see silver lining to destructive floods
Australian wheat farmers are the unexpected beneficiaries of the country’s most devastating floods in more than half a century, with the deluge priming their land just in time for the major planting window next month. While the recent downpour has caused widespread damage - submerging houses, sweeping away livestock and smashing roads - the impact for the wheat industry is providing something of a silver lining. 

Mar 25 - Mexico will miss corn output forecast, says key farmers' group
Mexican corn production is likely to total no more than 24 million tonnes this year, significantly less than the government's forecast, the head of one of the country's largest corn farmer associations said in an interview. Juan Pablo Rojas told Reuters that the official estimate of nearly 27 million tonnes by the agriculture ministry's SIAP statistical agency is unreliable due to budget cuts that have hit field personnel.

Mar 25 - Slow growth in China’s soybean demand threatened by hog disease outbreaks - Braun
China is taking in record amounts of soybeans from the United States and Brazil as its hog population recovers from a deadly disease that began nearly three years ago, but import expansion into the next marketing year might be minimal. Additionally, China continues to report new outbreaks of African swine fever (ASF). Many market-watchers are growing fearful that the disease could be worse than it appears, adding uncertainty around the direction of global feed ingredient trade over the next year or so.

Mar 25 - France should boost wheat quality to lift China exports - COFCO
France's grain sector needs to offer higher-quality wheat to meet Chinese industry needs and strengthen phytosanitary checks if it wants to further expand sales to China, a senior manager at COFCO International said on Wednesday. The volume of French wheat exports to China has surged in the past year, as France is among the few approved suppliers able to capture robust Chinese demand.

Mar 25 - USDA devotes $6 bln to help small, disadvantaged farmers hurt by pandemic
The U.S. Department of Agriculture said on Wednesday it will dedicate at least $6 billion to help smaller-scale and socially disadvantaged farmers who were hurt by the pandemic, along with producers of organic food and other specialty crops. The agency said it would also increase by approximately $5.6 billion payments made to cattle producers and growers of crops like corn and soybeans. COVID-19 disrupted agricultural supply chains last year, though corn and soybean prices are now at multi-year highs.

Mar 25 - Friendly prospects for U.S. spring planting, but dryness concerns loom - Braun
The latest weather outlooks for the U.S. spring are favorable for American farmers to plant what could very likely be record corn and soybean crops. However, the moisture situation is vastly different than in the past two years, and that could come into play later in the season. It has been three years since strong U.S. corn and soy yields have been observed, so the Corn Belt’s plentiful soil moisture in 2019 and 2020 did not exactly fend off yield losses. The reasons for those losses were different in each year: late planting and an abundance of unplanted, high-yielding acres in 2019, and drought coupled with an unusually severe storm in 2020.

Mar 25 - Brazil's JBS profit bolstered by weak currency, strong Chinese and U.S. markets
Meat processor JBS SA's fourth-quarter profit rose 65% from a year earlier, boosted by strong food sales in China and the United States and a sharp devaluation of Brazil's real currency, the company said in a securities filing on Wednesday. For full-year 2020 its profit was 4.6 billion reais, 87% of which came in the fourth quarter.

Mar 25 - Belarus starts 2021 spring grain sowing - Belta
Farms in southern regions of Belarus have started spring grain sowing, Belta news agency quoted the agriculture minister Ivan Krupko as saying on Wednesday. The Belarusian state weather centre last week said that farms could start 2021 spring grain sowing in the first half of April and the delay from March was caused by cold weather and snow.

Mar 25 - Iraq expects to produce 5 million tonnes of local wheat
Iraq is expected to produce 5 million tonnes of wheat locally this season, deputy agriculture minister Mahdi al-Jabouri said. The wheat surplus in the April-May harvest would be stockpiled rather than exported, Jabouri added.

Mar 24 - Soy, sugar traders fight for space in Latam's largest port; costs jump
Soy and sugar traders are fighting for room in Latin America's largest port, rushing to secure loading slots as the slowest Brazilian soy harvest in 10 years pushes the grains export window into the sugar season. Congestion was hitting Brazil's Santos port just as consumers worldwide have been turning to top exporter Brazil for sugar and soybean supplies. The glut of shipments waiting to leave is boosting transport costs and will likely delay arrivals at destinations.

Mar 24 - Ukraine refineries process 57% 2020 sunseed crop in H1 2020/21
Ukrainian vegetable oil refineries have processed 7.3 million tonnes of sunflower seed in the first half of the 2020/21 season or almost 57% of the volume available for crushing from the 2020 harvest, the Ukrainian vegetable oil association said on Tuesday. Ukraine is the world largest sunoil exporter which supplied 6.63 million tonnes of sunoil to foreign markets in the 2019/20 season which runs from September to August.

Mar 24 - U.S. EPA extends deadline for refiners to show compliance with biofuel laws
The U.S. Environmental Protection Agency said on Tuesday it was finalizing a proposal to extend the deadlines for oil refiners to prove their compliance with the nation's biofuel blending laws for the years 2019 and 2020. The agency said refiners now have until Jan. 31, 2022, to submit compliance documentation for the 2020 year, while small refiners have until Nov. 30, 2021, to submit their documentation for the 2019 year.

Mar 24 - S.Africa's 2020/2021 maize output seen rising 6% on previous season
South African maize farmers are expected to harvest 6% more of the staple crop in the 2020/2021 season compared with the previous season, boosted by favourable weather conditions and increased plantings, a Reuters survey showed on Tuesday. South Africa’s Crop Estimates Committee (CEC) is expected to forecast the maize production at 16.289 million tonnes for the 2020/2021 season, up from the 15.300 million tonnes planted last season, an average estimate of five traders and analysts showed.

Mar 24 - Brazil's JBS pledges net zero greenhouse emissions by 2040
JBS SA, the world's largest meatpacker, has committed to zeroing the balance of its global greenhouse gas emissions by 2040, the company said on Tuesday, amid criticism of its role in a Brazilian beef industry driving rainforest destruction. "We know it is very difficult to achieve this," Chief Executive Gilberto Tomazoni said in an interview. "It will challenge the entire company."

Mar 24 - EU extends temporary catch limits on fish stocks shared with Britain
European Union ministers agreed on Tuesday to extend to the end of July the bloc's catch limits for fish stocks shared with Britain, to ensure fishing can continue uninterrupted while Brussels and London seek a full-year deal. In their post-Brexit trade deal, the EU and Britain agreed to jointly set limits each year for fishing their shared stocks after Britain completed its exit from the 27-country bloc on Dec. 31.

Mar 23 - EU 2020/21 soft wheat exports 19.34 million tonnes by March 21
Soft wheat exports from the European Union in the 2020/21 season that started last July had reached 19.34 million tonnes by March 21, data published by the European Commission showed on Monday. That was down from 24.65 million tonnes cleared by the same week last season, the data showed.

Mar 23 - Brazil's second corn planting at 86% of estimated area, below historical average
Planting of Brazil's second corn in the Center-South region reached 86.2% of the area, some 10 percentage points below the historical average for this time of year, according to an estimate on Monday by Safras & Mercado, an agribusiness consultancy. Brazil's second corn, which is planted in the same areas as soybeans after the oilseeds are harvested, will be planted on an estimated 14.1 million hectares (34.8 million acres) in the Center South this season, Safras said.

Mar 23 - Russia to extend sugar, sunflower oil price cuts to fight food inflation
Russia's government plans to extend retail price cuts on sugar and sunflower oil and eliminate some import taxes in its battle to tame the country's rising food inflation, it said in a statement on Monday. Since December, Russia has imposed several grain export taxes and other measures. Producers of sugar and sunflower oil agreed to reduce prices with retail chains until the end of March.

Mar 23 - Canada's Richardson International to double canola crush capacity at Saskatchewan plant
Richardson International plans to double its canola crushing capacity at Yorkton, Saskatchewan, to 2.2 million tonnes annually, making it Canada's largest such plant, the company and provincial government said on Monday. Canola production has grown rapidly in Western Canada, the world's biggest producer of the yellow-flowering crop. Prices last month hit all-time highs, as global demand soared for oilseeds to make vegetable oil and animal feed.

Mar 23 - Germany agrees to more wild boar hunting to combat swine fever
The governments of Germany, Poland and the Czech Republic have agreed that intensified hunting of wild boar is needed to combat an outbreak of African swine fever (ASF) among wild animals, Germany’s agriculture ministry said on Monday. Asian countries including China banned German pork imports in September 2020 after ASF was found in wild boar in east Germany, not farm animals, causing falling pig prices.

Mar 23 - Ukraine grain exports down 23.4% so far in 2020/21 season
Ukraine's grain exports have fallen by 23.4% to 34.01 million tonnes so far this season, which runs from July 2020 to June 2021, economy ministry data showed on Monday. The exports included 14 million tonnes of wheat, 15.43 million tonnes of corn and 4.05 million tonnes of barley, the data showed.

Mar 23 - More than 1,600 cattle on second Spanish cattle ship to be killed
Spain on Monday ordered the slaughter of 1,610 cattle which have been stuck aboard the Elbeik livestock ship since December, just weeks after hundreds of cattle on another vessel met a similar fate. The agriculture ministry said the animals were unfit for further travel and could not be re-imported into the European Union, meaning they must be isolated and killed in the coming days.

Mar 22 - China's soybean imports from Brazil plunged in Jan-Feb on cargo delays
China's soybean imports from Brazil fell sharply in the first two months of 2021 compared to the same period last year, customs data showed on Saturday, as rain delayed some shipments from the top exporter. China, the world's top buyer of soybeans, brought in 1.03 million tonnes of the oilseed from Brazil in Jan-Feb, down nearly 80% from 5.14 million tonnes a year earlier, data from the General Administration of Custom showed.

Mar 22 - Ukrainian wheat and barley export prices fall
Ukrainian wheat export prices have lost as much as $7 a tonne over the past week on this year's harvest outlook and a drop in Russian wheat prices, the APK-Inform agriculture consultancy said on Sunday. The government has said that favourable weather could help farmers to increase the grain crop to 75 million tonnes this year, from 65.5 million tonnes in 2020, with exports reaching 53 million tonnes in the 2021/22 season.

Mar 22 - Investors urge Europe to prioritise climate in agriculture reform
A $2 trillion group of investors on Monday urged the European Commission to be more ambitious in its planned overhaul of the bloc's huge farming subsidy programme to fight climate change and protect biodiversity. Ahead of a meeting of agriculture ministers from European Union countries on Monday, the group said proposed reforms to the Common Agricultural Policy needed to go much further to align with the EU target to reach net zero greenhouse gas emissions by 2050.

Mar 22 - Facing public pressure, palm oil firms are going green - study
Of the seven commodities sectors driving deforestation, palm oil companies are doing the most to alleviate their environmental impact following years of public pressure, a study by a global environmental disclosure group shows. The CDP study, which will be released on Monday but was given to Reuters in advance, is likely to ramp up pressure on commodity companies to go green given the progress in palm oil, which is widely blamed by environmentalists for much of the destruction of tropical rainforests.

Mar 22 - JBS ordered to pay $3.6 mln after Brazil beef plant's COVID outbreak
A court has ordered JBS SA to pay 20 million reais ($3.62 million) in damages after an outbreak of COVID-19 at a beef plant in northern Brazil, according to a copy of the ruling seen by Reuters on Friday. The damages ruling was related to workers' contamination in São Miguel do Guaporé, where JBS is the town's biggest employer. It marks the first victory for the plaintiffs since labor prosecutors started suing the company last year over a lack of adequate health protocols, Labor Prosecutor Priscila Schvarcz told Reuters. 

Mar 22 - Argentina orders grain port workers to end short-lived strike and negotiate
Workers at the Argentine grains port hub of Rosario ended an hours-long strike on Friday, after the government ordered labor unions to negotiate a settlement with management. The General Labor Confederation of San Lorenzo, which represents workers in the northern part of the Rosario grains hub, began the strike at the start of the morning shift over claims that one of the export companies operating in the area had laid off workers without proper compensation.

Mar 22 - China to crack down on use of leanness enhancers in cattle and sheep
China's agriculture ministry said on Friday it will crack down on the use of leanness-enhancing agents in farm animals to guarantee the quality and safety of livestock products. The three-month drive will focus on the use of the banned substance clenbuterol in cattle and sheep, the Ministry of Agriculture and Rural Affairs said in a statement, also urging local authorities to monitor its possible use in pigs.

Mar 19 - U.S. green energy push sets global edible oils alight, raises food inflation fears
U.S. President Joe Biden's green fuel push using edible oils is helping drive up vegetable oil prices that are already near record highs, hitting key cost-sensitive consumers in India and Africa and stoking global food inflation fears. The United Nations' vegetable oils price index has rallied 70% since last June to nine-year highs after labour shortages at Asian palm plantations and bad weather in key sunflower, rapeseed and soybean hubs pinched edible oil output and cut inventories to 10-year lows.

Mar 19 - China seeks to cut corn, soymeal content in animal feed - sources
China's agriculture ministry has launched a campaign to lower the content of corn and soymeal in animal feed, according to a document issued this week, which could have repercussions for the global grain trade. The document, sent to animal feed producers and other government departments, outlines a plan for nutrition experts to draw up guidelines by the end of this month on ways corn and soymeal could be replaced by alternative grains, three industry sources with knowledge of the matter told Reuters.

Mar 19 - Argentina's thirsty farm belt seen getting little rain over next two weeks
Argentina's main farm region will receive little rain for the rest of this month, the Buenos Aires Grains Exchange said on Thursday, after significant rainfall in recent days slowed the loss of crops caused by months of unusually hot, dry weather. The South American grains powerhouse is the world's No. 3 corn exporter and its top supplier of soymeal livestock feed.

Mar 19 - Workers at Argentine ports hub Rosario say to go on 24 hour strike
Workers at the Argentine grains port hub of Rosario will start a 24-hour strike on Friday morning to protest layoffs at one of the companies in the sector, an official with the local CGT labor umbrella group said on Thursday. Argentina is the world's top exporter of soyoil, used in making biofuels, and soymeal livestock feed used to fatten hogs and poultry from Europe to Southeast Asia. Rosario is home to some of the biggest soy crushing plants in the world.

Mar 19 - U.S. corn market unfazed by flurry of Chinese corn bookings - Braun
After a several-week hiatus, huge U.S. corn sales to China, which has recently become the largest buyer of the American grain, are once again being verified. But the news has failed to boost Chicago corn futures as the bookings are likely unsurprising to the market. The U.S. Department of Agriculture between Tuesday and Thursday confirmed a total of 3.08 million tonnes of U.S. corn for delivery to China in the 2020-21 marketing year ending Aug. 31. That brings total 2020-21 Chinese bookings to at least 22.4 million tonnes (883 million bushels).

Mar 19 - Russia reviews its measures to curb price growth for sugar, sunflower oil - Interfax
Russia is analysing its previously imposed measures to curb price growth in sugar and sunflower oil, the Interfax news agency reported on Thursday, citing the economy minister, Maxim Reshetnikov. Moscow has imposed a series of export taxes on its agriculture products since December as it attempts to stabilise rising domestic food prices amid the coronavirus pandemic. 

Mar 19 - Venezuelan farmers seek permission to import diesel amid shortages
Venezuelan farmers said on Thursday that they had asked the government to allow them to import diesel themselves to alleviate shortages of the fuel that are hindering food production and distribution.  Diesel has become scarce in the crisis-stricken OPEC nation amid very low output at state oil company Petroleos de Venezuela's 1.3 million barrel-per-day (bpd) refining network, and escalating U.S. sanctions barring foreign oil companies from swapping fuel for Venezuelan crude. 

Mar 19 - Strategie Grains cuts EU wheat export forecast as demand wanes
Consultancy Strategie Grains on Thursday lowered its monthly forecast of soft wheat exports from the European Union and Britain in the 2020/21 season by 900,000 tonnes to 25.2 million to take account of a drop in demand, notably from China.  Hefty Chinese purchases this season had fueled a rally in European wheat prices to more than 7-year highs late last month, also supported by an export tax on Russian wheat exports. Prices have since pared some of the gains. 

Mar 19 - Ukraine producers promise to keep key food prices stable
Leading food producers' associations in Ukraine have told the government they will keep domestic prices stable for several popular food items to help stave off inflation already hitting neighbouring Russia, unions said on Thursday. Russia has imposed export taxes on its agricultural products since December in a bid to stabilise rising domestic food prices.

Mar 18 - EU 2020/21 soft wheat exports 18.67 million tonnes by March 11 
Soft wheat exports from the European Union in the 2020/21 season that started last July had reached 18.67 million tonnes by March 11, data published by the European Commission showed on Monday. That was down from 23.58 million tonnes cleared by March 15 last season, the data showed. 

Mar 18 - WFP to procure 200,000 tonnes of wheat for Sudan in 2021 
The World Food Programme will procure 200,000 tonnes of wheat for Sudan in 2021, in the second year of a programme that allows the country to help prevent shortages while preserving precious foreign currency reserves, a WFP official told Reuters. The system agreed with the WFP last year allows Sudan to reimburse the organization for the wheat in local currency, and aims to help reduce the impact of frequent shortages of wheat, which have become common as Sudan suffers a protracted economic crisis.

Mar 18 - Britain's wheat imports slow in January 
Britain's wheat imports slowed in January but are still running at more than double last season's pace, customs data showed on Friday. Wheat imports for the month totalled 103,197 tonnes, down from 332,847 tonnes in December. A slowdown had been expected following the expiration of a transitional trade agreement between Britain and the European Union at the end of 2020.

Mar 18 - Rains in Argentina slow deterioration of drought-hit soy, corn crops
Rain storms this week in Argentina's Pampas farm belt have slowed the deterioration of many drought-hit soybean and corn fields, crop weather specialists said on Wednesday. Dryness has blighted Pampas since mid-2020, prompting the Buenos Aires Grains Exchange last week to cut its soy and corn harvest estimates. Soy and corn are Argentina's main cash crops.

Mar 18 - Sovecon ups its forecast for Russia's 2021 wheat crop due to favourable weather
Russian Sovecon agriculture consultancy said on Wednesday that it had raised its forecast for Russia's 2021 wheat crop to 79.3 million tonnes from the previously expected 76.2 million tonnes.  "Crop conditions have improved dramatically in (Russia's) south thanks to mild winter and ample precipitation in recent weeks," Sovecon said in a note.

Mar 18 - Ukraine wheat export prices lose $10 a tonne so far this week 
Ukrainian wheat export prices have lost around $10 a tonne so far this week due to restrained demand from importers and an increase in the attractiveness of European grain, APK-Inforn agriculture consultancy said on Thursday. The expected improvement in the state of winter crops in the United States and the Black Sea region due to the forecast of heavy rainfall was an additional factor, it said in a report.

Mar 18 - China's sow herd grew slightly in first two months - agriculture ministry
China's sow herd grew 34.1% in February from the same month a year earlier and 1% from the prior month, the Ministry of Agriculture and Rural Affairs said on Thursday, providing a more rosy outlook than estimated by many analysts. China's herd of breeding sows is being closely watched after farm managers, veterinarians and analysts said there had been a high rate of outbreaks of African swine fever during winter months. 

Mar 18 - CME to launch Ukrainian wheat futures with Platts in April
CME Group said on Wednesday it will list Ukrainian wheat futures and options next month in partnership with pricing agency Platts, expanding its footprint in the major grain-exporting Black Sea region to a third contract. The derivatives, to be launched on its Globex electronic platform, will be effective from Sunday April 11 for trading on Monday April 12, pending regulatory approval, the market operator said in an emailed notice.

Mar 18 - German pig prices firm as EU sales replace lost China business
German pig prices held firm this week as strong sales inside Europe helped markets to recover from import bans on German pork imposed by Asian buyers including China, traders and industry sources said on Wednesday. German pig prices remained at the high of 1.50 euros a kg slaughter weight hit last week, up from 1.21 euros in February, German animal farmers' association VEZG said.

Mar 18 - Ukraine says can resume poultry exports to EU from bird flu free areas
Ukraine, a major supplier of poultry products, said on Wednesday it had agreed with the European Union to separate Ukrainian bird flu-free and affected regions, that allows Kyiv to resume poultry exports to the union. "This (exports) will happen even given that restrictions are still in place in areas where there have been cases of the disease and that safe products can be supplied from unaffected areas," Ukraine's State Service on Food Safety said in a report.

Mar 18 - Brawls in shops as Lebanon's financial meltdown hits supply of food
The collapse of Lebanon's currency has forced many grocery shops to temporarily shut within the last 24 hours, raising fears that a country reliant on imports could soon face shortages of food. Food shops around the country were locking their doors, halting online deliveries or restricting customers' orders. Others stayed open, but could not say for how long.

Mar 18 - Algeria court orders detention of former state grains agency chief
An Algerian court has placed in custody the former head of state grains agency OAIC along with eight of its provincial officials in connection with corruption charges, state news agency APS reported on Wednesday. Abderrahmane Bouchahda and the eight officials appeared before a court in the eastern province of Guelma on Tuesday, APS said, citing a judicial source.

Mar 17 - Australian wheat farmers double down after record harvest
Australian wheat farmers are scouring the market for crop-planting machinery, fertiliser and other farm products, weeks out from the country's main wheat-planting window as suppliers struggle to keep pace with strong demand. After harvesting their biggest-ever wheat crop in 2020, many farmers are betting on back-to-back bumper seasons, buoyed by good moisture levels in some of the country's main grain-growing areas. 

Mar 17 - U.S. announces largest sale of corn to China since January
China booked its largest purchase of U.S. corn since January, the U.S. Department of Agriculture (USDA) said on Tuesday. The USDA confirmed that private exporters sold 1.156 million tonnes of U.S. corn to China, the biggest sale announced through the USDA's daily reporting system since Jan. 29, when China bought 2.1 million tonnes of the grain in the second-largest U.S. corn sale on record. 

Mar 17 - Japan temporarily sets higher tariffs on U.S. beef imports
Japan is temporarily raising tariffs on U.S. beef imports as volumes have exceeded levels agreed to between the two nations for the fiscal year ending on March 31, Japan's agriculture ministry said on Wednesday. From Thursday, the tariff will rise to 38.5% from 25.8% for 30 days through April 16, marking the first time the safeguard measure has been imposed on U.S. beef imports since August 2017.

Mar 17 - Indonesia's Jan palm oil exports up nearly 20% y/y - association
Exports of palm oil from the world's top producer Indonesia rose nearly 20% on annual basis in January, the country's biggest palm group said, but output was disrupted by flood and stock fell to a six-month low. Indonesia exported 2.86 million tonnes of palm oil and its products in January, up 19.6% from the same month last year, data from the Indonesia Palm Oil Association (GAPKI) showed on Wednesday.

Mar 17 - U.S. renewable fuel credits hit multi-year high as oil group urges EPA to act
U.S. renewable fuel credits this week hit fresh multi-year highs, while an oil refining trade group urged the Biden administration to use its authority to help stabilize the market. Prices for so-called Renewable Identification Numbers, or RINs, have climbed all year as costs for feedstocks such as soybean oil increase and as market participants bet on reduced exemptions granted to oil refiners that would waive them from U.S. biofuel blending requirements.

Mar 17 - Malaysia maintains April crude palm oil export duty at 8% 
Malaysia has kept its April export duty for crude palm oil at 8%, though it raised the reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday. The world's second-largest palm oil producer calculated a reference price of 4,331.48 ringgit per tonne in April, up from 3,977.36 ringgit in March. 

Mar 17 - Brazil's BRF gets nod to export chicken wings to Canada
Brazilian food processor BRF SA said on Tuesday Canada has authorized chicken wing exports from two of its plants located in top farm state Mato Grosso. BRF has been seeking to sell more products to Canada to strengthen its position in developed markets and also shore up competition against domestic rivals including JBS SA, which have large operations in North America.

Mar 17 - Fonterra to sell China JV farms, Beingmate stake as profit jumps 43%
New Zealand's Fonterra said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate as it looks to move its focus from Beijing and prioritise domestic operations. Fonterra also posted half-year results, with a 43% surge in adjusted profit due to robust demand from China and firmer global dairy prices.

Mar 17 - German 2021 wheat and rapeseed harvest seen little changed on year
Germany's 2021 wheat crop of all types will increase slightly by 0.9% on the year to 22.34 million tonnes, the country's association of farm cooperatives said in its first harvest estimate on Tuesday. The association forecast Germany's 2021 winter rapeseed crop will record a small fall of 0.7% from last summer’s crop to 3.48 million tonnes.

Mar 17 - Pressure to control armyworm in China significantly higher than last year - agriculture ministry
Pressure to prevent and control armyworm in China this year is significantly higher than last year, the country's agriculture ministry said on Tuesday. The climate conditions in Mekong river area is favorable for reproduction of the pest, and there will be sufficient armyworm to migrate to China later, the Ministry of Agriculture and Rural Affairs said in a statement, citing Wu Kongming, expert with Chinese Academy of Agricultural Sciences.

Mar 16 - OVHcloud is currently evaluating potential technical and operational measures to bring solutions to all affected customers. All communication channels, including our incident tracking platform, can be accessed so that you can stay informed of developments in real time.

You can find the last update concerning our C3 SWAP server :

http://travaux.ovh.net/?do=details&id=49484


- SBG-1 Situation : 4 of 12 rooms were damaged
- Electrical restart : Temporarily repowered on 13th March and will be restored permanently on 16th March
- Network restart :
+ Backbone: temporary connection to SBG on 15th March
+ Internal network to be redeployed on 16th March
- Server restart : Provisional ETA: Monday, 22 March for gradual restart

Mar 16 - Higher EU grain yields seen this year - MARS
Winter grain crops in the European Union are starting spring in fairly good condition and yields should rebound in 2021, the EU's crop monitoring service said on Monday.  In its first yield forecasts for 2021, the MARS service estimated the average soft wheat yield in this year's European Union harvest at 5.89 tonnes per hectare (t/ha), up 3.3% compared with 5.70 t/ha in 2020 and 3.5% above the average of the past five years.

Mar 16 - NOPA February soy crush drops to 17-month low of 155.158 million bushels, below estimates
The U.S. soybean crush was well below trade expectations in February, sinking to the lowest in 17 months, according to data released by the National Oilseed Processors Association (NOPA) on Monday. NOPA members, which handle about 95 percent of all soybeans processed in the United States, crushed 155.158 million bushels of soybeans last month, the lowest for a single month since September 2019. The crush was down from 184.654 million bushels in January and 166.288 million bushels in February 2020.

Mar 16 - COFCO hires banks for trading arm IPO plan - Bloomberg
Chinese food group COFCO Corp has hired banks to advise on a plan to merge trading arm COFCO International with some domestic businesses before a listing of shares in the new entity, Bloomberg reported on Monday, citing sources.  State-owned COFCO has previously said it aims to list its international trading division, after the acquisition of Dutch-based Nidera and the agribusiness of Noble Group from 2014 turned it into a global agricultural commodity merchant.

Mar 16 - U.S. corn shipments to China due for a pickup in pace - Braun
Since last year, China has been importing record volumes of U.S. corn due to a supply shortage and record domestic pri