World wheat production is set to fall to a five-year low following significant downgrades to crop prospects in the European Union and Russia. The inter-governmental body cut its forecast for world wheat production in 2018/19 by 16 million tonnes to 721 million, the lowest total since the 2013/14 season. The EU wheat crop was seen at 139.9 million tonnes, down from a previous projection of 147.3 million, with forecasts for the top four producers in the trading bloc, France, Germany, Britain and Poland, all revised down. Russias wheat crop was forecast to fall to 66 million tonnes, down from a previous projection of 70.9 million and far below the prior seasons 84.9 million. Global wheat stocks were forecast to fall to a two-year low of 247 million tonnes with production set to fail to keep pace with consumption in 2018/19 which was seen at 739 million.
The IGC kept its forecast for world corn (maize) production
The IGC kept its forecast for world corn (maize) production in 2018/19 at 1.052 billion tonnes, slightly above the prior seasons 1.044 billion, but a second successive global deficit was expected with consumption seen at 1.098 billion. A projected increase in maize largely hinges on a recovery in output in South America where planting for 2018/19 is still some months away.
Rice production is forecast up by 3mn t to 491mn t in 2018-19
Rice production is forecast up by 3mn t to 491mn t in 2018-19, but a rise of 5mn t in global rice consumption to 493mn t places demand above supply, reducing ending stocks by 2mn t.
World soybean production in 2018/19 was put at 359 million tonnes
World soybean production in 2018/19 was put at 359 million tonnes, marginally up from a previous projection of 358 million. A small global surplus was anticipated with consumption projected at 356 million.
Punjab fails to cut down area under rice cultivation.
Despite setting a target to bring down by over one lakh hectares (lh) area under rice cultivation this year, Punjab has failed and acreage under the crop has already reached up to 29.57 lh and is likely touch 30 lh again. Last year, 30.07 lh area was cultivated under rice and this year department had proposed to bring it between 28-29 lh by diverting its area to cotton and monsoon maize crops. But lack of canal water during cotton sowing, increased MSP of assured paddy and poor rate of recently harvested ‘spring maize’ are the contributing factors to increase in area under rice. Till July 23, 2018, the area under rice (the cultivation of which was started on June 20), had reached to 29.57 lh out of which over 23 lh was dedicated under paddy rice (parmal rice) and remaining under basmati rice.
Prices of select grains rise on increased offtake.
Prices of select bold grains advanced by up to Rs 30 per quintal at the wholesale grains market due to increased offtake by consuming industries. Increased offtake by consuming industries amid pause in arrivals from producing regions, mainly attributed the rise in select bold grain prices. In the national capital, barley rose by Rs 10 to rs 1590-1600 per quital.
UkrAgroConsult the consultancy raised its forecast for this year’s maize
UkrAgroConsult the consultancy raised its forecast for this year’s maize harvest to 27.3 million tonnes from the previous estimate of 26.6 million tonnes. The 2018/19 maize exports forecast remained unchanged at 21 million tonnes. The current weather conditions suggest corn yield in Ukraine may rise. In view of the above. Forecasts corn production in the country to hit a record 27.3-27.5 million tonnes.
Madhya Pradesh aims 2-mln-tn paddy buys 18-19.
The Madhya Pradesh government has set a target of procuring 2.0 mln tn of paddy in the kharif marketing season in 2018-19 (Oct-Sep).
China clears 14 Indian rice companies for export amid trade war with US.
China has agreed to import rice from 14 of the 19 registered rice exporters from India, while the remaining five— mostly of basmati rice sellers — have been asked to improve storage and isolation facilities before applying afresh. China allows import of only basmati rice from India, but with this clearance, even non-basmati rice can be exported.
Burma price of best rice rises as output falls.
The price of high-quality rice in the country is increasing annually because of a decline in production. Myanmar people mainly consume high-quality Pawsan rice, which is grown in Ayeyarwady Region, and Shwe Bo Pawsan rice grown in Shwe Bo township of Sagaing Region. In 2014, a bag of Pawsan rice cost K29,000 (US$20). That rose to K35,000 in 2015 and K42,000 this year. That’s an increase of more than 44 percent over the four-year period. Meanwhile, the price of a bag of Shwe Bo Pawsan rice rose 58pc to K57,000 in 2018 over the same period.
Bad weather delaying delivery of 240,000 bags of imported
A series of weather disturbances in the past few weeks have been delaying the delivery of 240,000 bags of imported rice from Thailand meant for Eastern Visayas region. The foreign vessel carrying 140,000 bags of Thai rice is stuck at Bacolod port for weeks and was unable to unload the allocation for Negros Island. The vessel was scheduled to arrive in the region two weeks ago. the cargo ship unloaded 25,000 bags out of 80,000 bags intended for Negros Island. If the weather improves, unloading of remaining 55,000 will be completed within a week. Another ship from Thailand carrying 100,000 bags is still taking shelter in the West Philippine Sea due to storm.
Akola tur down in thin trade on transporters strike.
Prices of tur fell in thin trade in the benchmark market of Akola because of a a transporters strike and incessant rains. In Akola, tur was sold at 3,800 rupees per 100 kg, down 50 rupees. Arrivals were unchanged at 500-700 bags (1 bag = 100 kg). Prices were steady in Kalaburagi, Karnataka, at 3,700-3,850 rupees, with arrivals also steady at 2,000-3,000 bags.
Barley down in Jaipur on low demand from brewers.
Prices of barley fell in Jaipur owing to sluggish demand from malt manufacturers as concern over quality of the domestic stock persisted. In the benchmark Jaipur market, barley was sold for 1,350 rupees per 100 kg, down 10 rupees. Talk that the grain will be imported from Argentina is also creating bearishness in the market. However, limited supply and improved demand from poultry feed sector cushioned the fall in prices.
Hoping for the best: Onion auctions to restart despite truckers’ strike.
Onion auctions, which had come to a halt at Lasalgaon — the country’s largest wholesale market for the vegetable — due to the ongoing transporters’ strike, after an agreement was reached between the traders and the market committee officials. Even though the strike has not been called off, traders agreed to take a risk and participate in the auctions. However, they hope that the agitation will be called off by the truckers in a couple of days. On Monday, some onion auctions took place in the sub-divisional market committees of Niphad, Umrana and Vanchur. Onion arrivals in these markets had touched 16,686 quintals and modal prices touched Rs 1,100 per quintal.Last week, arrivals at Lasalgaon were around 18,064 quintals with prices averaging at Rs 1,116 per quintal. Prices and arrivals were in the same range throughout last week.
Kuwait may start purchasing Russian wheat.
The relevant authorities of Russia and Kuwait held talks about the possibility of supplying Russian wheat to the State of Kuwait. Russia has just occasionally exported wheat to Kuwait by now: 9.8 KMT in July 2015/16. Russia supplies barley to the Kuwaiti market. Barley shipments totaled 157.9 KMT in July-May 2017/18.
Drought to force top wheat buyer Egypt to pay more.
A drought that’s hit wheat crops across the Black Sea region and Europe will force top buyer Egypt to pay more for supplies. The cheapest offer tender was more than $14 a metric ton higher than what Egypt’s state run buyer paid in its last purchase. The General Authority for Supply Commodities is seeking wheat for Sept. 1-10 delivery. Benchmark futures traded in Chicago have surged almost 20 percent this year and Paris wheat for December is trading near a record for the contract. Dry weather means Russian production will fall for the first time in six years and output in Ukraine will be lower than expected. GTCS made the lowest offer at $234.26 a ton including freight for Russian wheat. Egypt paid an average $220.25 a ton for 175,000 tons of Russian wheat in the last tender on July 10. The second-lowest offer was from Daewoo at $235.66 a ton, also for Russian grain.
Japan lifts temporary ban on Canadian wheat.
Japan lifts temporary ban on Canadian wheat. Japan buys 62,957 tonnes of Canadian food wheat via tender
Ukraine wheat harvest, exports to fall on drought.
UkrAgroConsult cut its forecast for Ukraine’s 2018/19 crop year wheat harvest and exports due to a severe drought across the country during spring and the first half of summer. The agriculture consultancy reduced its wheat harvest forecast by 3.1 percent to 24.7 million tonnes, and exports to 15.5 million tonnes from 16 million tonnes forecast in June.
Rapeseed oil production in Russia at a three-year high.
Russian crushers produced 32.5 KMT of rapeseed oil in May 2018 against 32.2 KMT in April 2018 and 23 KMT in May 2017. Even towards the end of the season, the monthly volumes of rapeseed crushing remain steadily higher than a year ago. Overall, rapeseed oil production increased almost 21% in July-May 2017/18, to 351.2 KMT versus 290.6 KMT in the same period last year. Owing to a heavy rapeseed crop in 2017, this season’s rapeseed oil output is still at a three-year high.
Govt source says mills exported around 350,000 tn sugar so far.
Mills across the country have exported around 350,000 tn of sugar so far in the ongoing season started October. Around 350,000 tn has already crossed the border. Total export contracts are for around 400,000 tn so far. So, another 50,000 tn is also in the process. The sweetener has been shipped to west Asia, Sri Lanka, and Nepal at a freight-on-board price of nearly $320-$340 per tn. Total sugar exports from the country in 2017-18 (Oct-Sep) are expected to be around 500,000 tn, which is only a fourth of the quantity allocated by the government for the season.