Japan’s Ministry of Agriculture bought 79,770 tonnes of food-quality wheat from the United States and Australia in a regular tender that closed late on Thursday. it has suspended its tender and sale of wheat from Canada after grain containing a genetically modified trait was discovered last summer in Canada’s Alberta province.
FAO lowers 2018-19 global wheat output estimate by 18 mln tn.
The United Nations Food and Agriculture Organization has cut its forecast for global wheat output for 2018-19 by 18 mln tn to 736.1 mln tn. The lower forecast follows a cut in estimate for output in the European Union, Russia and Ukraine. The agency has also lowered outlook for global ending stocks to 264.2 mln tn from a record 283.4 mln tn estimated last month. Global wheat utilisation has also been slashed to 741.1 mln tn from 743.5 mln tn projected earlier.
Govt plans to sell 8 mln tonnes wheat at 1,890/qtl to bulk consumers.
Saddled with huge stock, the government plans to offload 7-8 million tonnes of fresh wheat in the open market at Rs 1,890 per quintal rate for meeting the demand from flour millers and other bulk consumers. The food ministry is likely to sell 7-8 million tonnes of wheat grown in 2017-18 crop year that ended last month. The rate at which the grain will be offloaded would be around Rs 100 per quintal higher than the last year. Last year, the OMSS rate for wheat was fixed at Rs 1,790 per quintal – ex-Ludhiana. As on June 1, the government was holding a wheat stock of 44 million tonnes. Its procurement agency FCI has purchased 35.5 million tonnes of fresh wheat in 2017-18.
Mustard seed futures prices rise on spot demand.
Mustard seed prices looked up by Rs 9 to Rs 4,073 per quintal in futures trade as traders created fresh positions in sync with higher physical markets sentiment. Pick up in demand from oil mills amid halt in arrivals from growing belts in the spot markets, encouraged traders to build up exposure, which reflected the upturn in mustard seed futures prices. At the National Commodity and Derivatives Exchange, mustard seed delivery for July went up by Rs 9, or 0.22 per cent, to Rs 4,073 per quintal.
Argentine soy harvest ends at 36 mln tons.
Argentina’s 2017/18 soy harvest ended at 36 million tonnes, below the 54 million tonnes estimated at the beginning of the season due to a severe drought.
China soybean stocks rise, crushers take 19 Brazil cargoes.
Chinese stocks of soybean rose again last week hitting a record high of 8.86 million mt.
Argentina crushers import 1.84m mt of soybean in January-April.
Crushers had imported a total of 1.84 million mt of soybeans through ports in Argentina’s Santa Fe province during January-April.
Brazil may buy upto to 1 million metric tons of U.S. Soybeans.
Brazil, the world’s largest soybean exporter, may have to import up to 1 million tonnes of the oilseeds from the United States by the end of this year to satisfy demand from local processors. If China’s demand for Brazilian soy rises amid a trade war with the United States, local processors may have to resort to imports from the United States.
Soybean prices down in Indore as arrivals may rise.
Prices of soybean were down in Indore on expectations of a rise in arrivals in the coming days amid subdued demand from crushers. In Indore, the benchmark market, soybean was sold at 3,500-3,550 rupees per 100 kg, down 50 rupees. Arrivals of soybean in Madhya Pradesh were estimated at 40,000 bags (1 bag = 100 kg), up from 33,000 bags. Arrivals are likely to rise to 100,000 bags in two-three weeks after sowing completes in the state. An increase in minimum support price for the oilseed in the kharif season by 349 rupees per 100 kg was below expectations as traders expected a 500-rupee hike. About 70% of sowing has been completed in Madhya Pradesh.
India oilmeal exports gain 9% in June quarter
The export of oilmeals during June 2018 has dropped by 33.56% as compared to June 2017 even though the overall export during April to June 2018 is reported at 654,774 tons compared to 599,346 tons during the same period of last year, up by 9%. The ongoing trade dispute between USA and China has created a lot of uncertainty and forcing China to look out to other origins for their requirements of soybean and oilmeals. This has compelled China to relook its ban imposed for importing of oilmeals from India since 2012. This will open up Chinese market for India. Of course, this is subject to clarification about phytosanitory certificate for export of oilmeals from India. During April – June 2018 Vietnam imported 116,839 tons of oilmeals (compared to 86,458 tons); consisting of 7,160 tons of soybean meal. South Korea imported 10,303 tons of soybean meal.
China to Cancel More US Soy Shipments.
Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the U.S. in the year ending Aug. 31 once the extra tariff on U.S. imports takes effect from Friday. China is the world’s top soybean buyer and has yet to take delivery of about 1.14 million metric tons of U.S. soybeans booked for the current marketing year. China had resold some 123,000 tons of committed deliveries to Bangladesh and Iran.
ADM, Cargill complete agreement for soybean joint venture in Egypt.
ADM and Cargill have successfully completed their transaction and formally launched SoyVenTM their new joint venture to provide soybean meal and oil for customers in Egypt. SoyVen owns and operates the National Vegetable Oil Company soy crush facility in Borg Al-Arab, along with related commercial and functional activities, including a separate Switzerland-based entity supplying soybeans to the Egypt crush plant. The plant’s daily crush capacity has been doubled to 6,000 metric tons in order to meet increasing Egyptian demand for higher-protein soybean meal and for oil, reducing the need for imports. The demand for high-quality soybean meal and for oil from both the food manufacturing and animal feed sectors continues to rise.
Modi’s bonanza to Indian farmers hampered by funds, storage.
Indian Prime Minister Narendra Modi’s pre-election gambit to sharply hike state-mandated prices for summer crops, including soybean, may mean little to millions of farmers, as the government lacks the storage and funds needed to buy most of the produce. The government announces MSPs for most crops to set a benchmark, but state agencies mainly buy limited quantities of staples such as rice and wheat at those prices, restricting benefits of higher prices to only around 7 percent of the country’s 263 million farmers. Implementing the scheme in full would be expensive, economists say. The government’s fiscal deficit target for the current financial year, at 3.3 percent of GDP, is already under pressure due to high oil prices.
Bangladesh wheat import tender lowest offer $256.38/T.
Bangladesh to import 50,000 tonnes of wheat drew its lowest offer from Singapore-based Agrocorp at $256.38 a tonne. Two other trading houses competed for the tender from Bangladesh’s Directorate General of Food, quoting deliveries at $258.95 a tonne and $262.89 a tonne. The price includes shipping, insurance and discharge costs. Bangladesh emerged as a major buyer of rice and wheat in 2017 after floods destroyed its crops, sending rice prices to record highs and prompted many people to switch to flour. Bangladesh has turned to the Black Sea region for wheat as supply from India dwindled to meet growing demand while the country’s output has stagnated at around 1 million tonnes.
Kansas winter wheat harvest was 71% completed.
Kansas winter wheat harvest was 71% completed by July 1 compared with 52% a week earlier and 63% as the 2013-17 average for the date. Harvest in adjacent states was 98% completed in Oklahoma (90% as the average for the date), 80% in Texas (83%), 7% in Nebraska (9%) and 21% in Colorado (9%).
Japan offers to buy 79,770 tonnes of food wheat via tender.
Japan’s Ministry of Agriculture is seeking to buy 79,770 tonnes of food-quality wheat from the United States and Australia in a regular tender. it has suspended its tender and sale of wheat from Canada after grain containing a genetically modified trait was discovered last summer in Canada’s Alberta province.
Japan to import 65,390 tonnes feed wheat and barley via tender.
Japan will import 27,210 tonnes of feed-quality wheat and 38,180 tonnes of barley for livestock use, via a simultaneous buy and sell (SBS) auction. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Oct. 31 and arrive in Japan by Dec. 28 in the tender that is usually conducted weekly. It is seeking the same amount for each grain to be loaded and shipped during the same period in a similar tender that will be held on July 11.
Rice stocks gain after govt. hikes paddy MSP.
Shares of rice mill operating stocks gained trade after the government increased minimum support price for paddy.
India Govt hiked 200 rs/Qtl the paddy MSP.
The government hiked the minimum support price (MSP) or purchase price for paddy crops up to Rs. 200 per quintal as it looked to fulfill its poll promise to give farmers 50 per cent more rate than their cost of production. The announcement of higher MSP coupled with the forecast of normal monsoon this year, could further boost foodgrains output. The MSP of paddy (common grade) has been increased by Rs. 200 to Rs. 1,750 per quintal, while that of Grade A variety by Rs. 180 per quintal to Rs. 1,770.
Brazil soybean exports fall 15.6%in June on trucker strike.
Soybean exports out of Brazil fell back to 10.42 million mt, down nearly 2 million mt compared to the month before.