Wheat

An official says the Iranian government needs no more wheat imports thanks to favorable crop harvest and procurement from local farmers at a time of diminishing grain stocks around the world. Largely self-sufficient in wheat a […]

Madhya Pradesh government will provide 750 rupees per 100 kg subsidy to farmers on purchase of certified wheat seed for sowing in 2018-19 (Jul-Jun) rabi season. Farmers may buy certified wheat seeds from cooperative societies mostly under Rashtriya Krishi Vikas Yojana and in some districts it is also given under the National Food Security Mission. Wheat grown in the state have high level of protein content than grown in Uttar Pradesh, Punjab and Haryana, among the major growers.

Poor rainfall and scanty water levels in reservoirs at major growing regions are likely to hit production of rabi crops this year. The country’s crucial southwest monsoon season ended with a deficit of 9%, missing the India Meteorological Department’s prediction by a huge margin. The country received 804.0 mm rainfall during the Jun-Sep monsoon season, against the normal weighted average of 887.5 mm. Poor rains lead to inadequate soil moisture, which is a must for sowing of rabi crops. Reservoir levels are also important for the irrigation-dependent rabi season that starts October. While the reservoir storage in most states is “healthy”, there is a shortage in Gujarat, West Bengal and Maharashtra due to poor rains. Deficient reservoirs raise some concern for the rabi crop because these three states together contribute 53% of the rabi production of foodgrains and oilseeds. However, the overall crop output may be higher as “kharif production estimates are healthy.

The Government Wednesday announced 6 per cent hike in support price of wheat at Rs 1,840 per quintal, a move that will give farmers an additional income of Rs 62,635 crore and help contain their simmering discontent over high input cost and low sales realisation. The decision comes within months of announcing higher price for Kharif crops, when the government fulfilled its promise of giving farmers 50 per cent more price than their cost of production. The Cabinet has approved a Rs 105 per quintal hike in wheat MSP to Rs 1,840 for 2018-19 season.

The government wants to declare the minimum support prices for key rabi crops at the onset of the season due to upcoming Assembly polls in several states. It has to be declared before the code of conduct comes into place.

Wheat futures are currently unchanged to 5 cents higher after posting 9 to 15 cent gains in most contracts, with MPLS the strongest in both cases. Russia’s ag safety watchdog apparently warned of a possible temporary suspension of 30 grain loading facilities for up to 90 days for phytosanitary issues. Importers had complained about poor quality in Russian shipments. NASS pegged the winter wheat planting at 43% complete, with the normal pace running 40%. The crop was 14% emerged, matching the average. Planting in the Southern Plains is ahead of the average, at 41% for KS and OK and 42% for TX. Taiwan purchased 110,000 MT of US wheat in their latest tender.

European wheat prices pared gains, pressured by a lack of demand for European supplies and reports of a record wheat harvest in Argentina. Benchmark December milling wheat on Paris-based Euronext closed 0.50 euro or 0.25 percent lower at 200.50 euros a tonne. Reached 202.75 euros in earlier trade. Argentina’s 2018/19 wheat harvest is expected to reach a record 19.7 million tonnes, up from 17.8 million tonnes last year.

Demand for French wheat has been shrinking, with port data showing a thin line-up aiming to France’s main client Algeria with nearly no exports to West Africa. French port silos are full so deliveries are being slowed down, although not halted, due to a lack of room.Silos are full in (the Atlantic port of) La Pallice and in Rouen and export prospects for October are thin or non-existent.

Wheat prices slipped by Rs 15 per quintal at the wholesale grains market due to reduced offtake by flour mills against adequate stocks position. However, other grains held steady in thin trade. Besides fall in demand from flour mills, sufficient stocks position on increased arrivals from growing regions mainly weighed on wheat prices.

Ukraine will not review a recently signed memorandum with traders on the volume of wheat available for export in the 2018/19 season. The memorandum allows the export of 8 million tonnes of milling wheat and 8 million tonnes of feed wheat.

Egypt’s state grains buyer GASC has bought 180,000 tonnes of wheat for shipment over Nov. 1-10 and a further 295,000 tonnes for shipment over Nov. 11-20. All of the wheat was Russian, apart from one 60,000 tonne cargo of Ukrainian wheat. For shipment Nov. 1-10 60,000 tonnes of Russian wheat from GTCS at $226 free on board (FOB) and $17.10 freight, equating to $243.10 cost and freight (C&F). 60,000 tonnes of Ukrainian wheat from Louis Dreyfus at $227.73 FOB and $16.87 freight, equating to $244.60 C&F.

Syria’s state grain import agency bought about 200,000 tonnes of Russian wheat in an international tender which closed this week. The General Establishment for Cereal Processing and Trade (Hoboob) purchased the wheat at $224.50 per tonne c&f free out Syrian ports. The tender had sought wheat sourced from Russia, Romania or Bulgaria. Shipment is for between Oct. 15 and Dec. 15. The tender allows partial shipment but not less than 100,000 tonnes. Syria is planning to import around 1.5 million tonnes of mostly Russian wheat this year to fill a supply shortfall. Food Corp of India sold 231,600 tn of wheat in the 3rd tender of september of auctions under the open market sales scheme for 2018-19 (Apr-Mar). The state-run agency had offered 1.98 mln tn of the grain at the auction.

Serbia’s 2018 wheat output rose 29.3% on the year to 2.942 million tonnes. The harvested area increased to 648,083 hectares in 2018, from 557,702 ha last year. Maize production is seen at 6.965 million tonnes in 2018, up 73.3% over the previous year.

Japan’s Ministry of Agriculture sought to buy 109,150 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender.

The Taiwan Flour Millers’ Association has issued an international tender to purchase 110,000 tonnes of grade 1 milling wheat to be sourced from the United States. The tender deadline is Oct. 2. The wheat is sought in two consignments both of 55,000 tonnes for shipment from the US Pacific Northwest coast.

Bangladesh’s state grains importer, CCPP, has opened a tender to buy 50,000 mt of milling wheat from the international.

Recent rains across Ukraine and Russia have improved conditions for 2018’s winter grain sowing and the prospects for the next year’s harvest. The situation is very favourable for sowing. Weather again gave us a bonus. Rains have fallen in all regions and there is nobody who can complain about the weather. Ukrainian farmers have sown 2.3 million hectares of winter grains as of Sept. 24, or 32 percent of the forecasted area of 7.2 million hectares. They sowed 2.5 million hectares at the same date a year earlier.

The pace of the wheat harvest in Russia is lower year on year as of September 20 after harvesting in the eastern regions of Siberia and the Urals got off to a late start due to delayed sowing and poor weather. This is in contrast to a month ago when an earlier-than-usual start to harvesting in the south of Russia because of favorable weather meant the pace of harvesting was quicker year on year. But that situation reversed as the harvest moved into eastern Russia, and Siberia and the Urals in particular, mainly producing spring crops. Late sowing and low temperatures during the development stage and rains in September resulted in delays to the harvest. As of September 20 the country had harvested 35 million ha, or 78% of the seeded area, from 37.7 million ha harvested a year ago. Total grains production amounted to 93 million mt at an average yield of 2.65 mt/ha, down 0.44 mt/ha from a year ago.

Wheat prices inched up by Rs 5 per quintal at the wholesale grains market due to increased offtake by flour mills. Besides increased offtake by flour mills, pause in arrivals from growing regions, helped wheat prices trade higher. In the national capital, wheat dara (for mills) edged up by Rs 5 to Rs 2,035-2,040 per quintal.

Saudi Arabia’s main state grain buyer, the Saudi Grains Organization (SAGO) had bought 630,000 tonnes of wheat in an international tender. The wheat was purchased at an average price of $270.22 a tonne. Origins offered were the European Union, North America (excluding Canada), South America and Australia, with the seller having the option of selecting the origin supplied.