Chinese stocks of soybean rose again last week hitting a record high of 8.86 million mt.
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.
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.
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.
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.
Japan buys 79,770 tonnes of food wheat via tender.
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.
Dry weather to cut German wheat production 15% YoY.
Dry weather across northern and central Europe will see Germany’s winter wheat yields drop 10% year-on-year.
Iraq skips cheaper Canadian wheat to buy Australian in tender.
Iraq’s state grain buyer purchased 100,000 mt of Australian wheat from CBH, in an international tender.
FAO has increased the estimate for global rice output in 2018-19.
The organisation has increased the estimate for global rice output in 2018-19 to record 511.4 mln tn, from 511.3 mln tn seen last month and 504.6 mln tn produced last year. Global utilisation of rice has been pegged at 509.5 mln tn, up from 509.3 mln tn projected earlier, and 504.3 mln tn last year. Following rise in the estimate for global rice consumption, the agency has lowered its projection for 2018-19 ending stocks to 173.7 mln tn from 173.8 mln tn projected earlier. Global trade in rice is seen at 47.5 mln tn, 0.1 mln tn higher than the earlier estimate, but lower from 47.8 mln tn last year.
Egypt turns from rice exporter to importer due to water scarcity.
After being a rice exporter, Egypt will turn into an importer following the governmental measures reducing the rice-cultivated areas due to the water shortage crisis the country is suffering from. Thus, it is expected that Egypt will produce about 3.3 million tons this year as one feddan produces 4 tons, while the Egyptians’ annual consumption of rice is estimated at 4.3 million tons.
Vietnam rice export upbeat in first half.
In June alone, the country shipped abroad about 604,000 tonnes of rice worth US$317 million, raising the first half’s figures to 3.6 million tonnnes and US$1.8 billion, respectively. Vietnamese rice was sold at an average price of US$505 per tonne in the first five months of the year, up 13.4% year-on-year. China remained the country’s largest rice importer, making up 30% of the market share, with more than 844,000 tonnes valued at US$449.4 million. Vietnam is expected to garner 23.3 million tonnes of rice in the remaining months of 2018, raising total output in the year to 43.9 million tonnes, representing a year-on-year rise of at least 1.2 million tonnes. Notably, Vietnam’s rice exports to Indonesia rose 290.8 times in volume and 269.5 times in value against the same period last year to reach 596,058 tonnes and US$280.04 million, accounting for 17.3% of the country’s total export turnover to Indonesia.
Lasalgaon onion prices on the rise amid low supply.
Onion prices in Maharashtra are moving up. Over the past month, the modal prices in the Lasalgaon market have risen 46 per cent owing to higher demand and supply constraints due to crop damage in other parts of the country. At the Lasalgaon market near Nashik, which serves as the bellwether for the bulb, prices rose from rs351-940 per quintal on June 5 to rs500-1,191 on June 20. On July 5, the price reigned at rs 500-1,475, with the modal price at rs 1,250. Crop in States such as Rajasthan and Madhya Pradesh had wilted due to excessive heat, resulting in additional demand from Maharashtra. This rally will continue for three months until the new crop arrives in the market. Over the past month, the retail price of onion has increased from rs 20 to rs32.
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.
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.
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.
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.
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.
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.
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.
China expected to cancel 1.1 million tonnes of soybeans from the US as new tariff bites.
Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the United States in the year ending August 31 once the extra tariff on US imports takes effect. China has yet to take delivery of more than 1.1 million tonnes booked for the current marketing year, last week that China had resold about 123,000 tonnes of committed deliveries to Bangladesh and Iran.