CBOT Corn futures closed steady to fractionally mixed as July was down 1.11% on the week. The USDA reported a private export sale of 131,300 MT of corn to Mexico this morning. The sale was broke down to 30,000 MT for delivery in 2017/18, with the remaining 101,300 MT set for 2018/19 shipment. There was also a sale of 117,000 MT for 2018/19 to Panama reported through the USDA’s daily reporting system. The 6-10 day outlook is forecasting above average temps and precip in most of the Corn Belt. China sold 739,954 MT of corn from state reserves, totaling 18.64% of the offered amount.
US CBOT soybean prices continuing bearish level.
CBOT soybean is continuing with its bearish tone ended price mixed tone. Favourable US crop weather and increasing trade tension between US & China pressurising the market. China is looking for more imports of soybean from Paraguay and Uruguay as Brazil cannot supply the increased demand.As tariffs will raise the overall cost of imports from the USA, so Brazil premiums for soybean climbed over 7% as trade tension between two countries increasing demand from Brazil. However, the USA’s high temperatures resulted in a slight decline in the soybean rating. The condition of the 2018 U.S. soybean crop declined 1% last week to 73% rated good to excellent. Seven states indicated that the soybean condition improved last week, nine states reported that the soybean condition declined last week, and two were unchanged.
China-U.S. trade war gets real as soybean tariffs imposed.
A growing trade war between the United States and China is weighing heavily on American soybean prices, which have fallen sharply from the spring highs. The weather in the U.S. Midwest is co-operating and the amount of soybeans in good to excellent shape at 74 percent is much better than last year at this time and better than the 10 year average. It is hard to keep up with conflicting developments in this row between the Trump administration and China. The spring high in new crop November soybeans was reached May 25 and the price had fallen since then by almost 12 percent.
Maize from Bihar, UP feeds poultry of Punjab, Haryana.
Punjab-based starch and poultry feed industries travel hundreds of kilometres to Bihar and Uttar Pradesh to procure superior quality maize in bulk and also save up to Rs 50 per quintal. Maize production in Punjab is far less than demand mainly because of farmers’ over-dependence on lucrative crops like paddy. The annual industrial demand of maize is around 3-4 million tonnes while Punjab produces less than 1 million tonne. Out of the total demand, almost 70% is being consumed by the poultry feed manufacturers. Punjab is likely to produce 5.70 lakh tonnes of maize in the current kharif season compared to 4.09 lakh tonnes in the previous year. As compared to Punjab, the average production in Bihar is around 6 million tonnes. Bihar grows the largest quantity of maize for the industrial use. The landing cost of maize purchased from Bihar is around Rs 1,230-1,250 per quintal. Punjab’s maize is, however, sold at around Rs 1,250-1,270 per quintal, including levies.
NCDEX shifts delivery centre for Nov onward maize contracts to Sangli.
The delivery center for maize contracts expiring in November and thereafter has been shifted to Sangli from Erode. As an additional delivery center earlier, Sangli received deposits of 12,350 tn of maize in 2015-16 and 6,100 tn in 2016-17. Sangli is also an important production center for the cereal, while Erode was mainly a consumption center. The November maize contract will be available for trading from Jul 2. Nizamabad and Jalgaon have been added as additional delivery centers to increase participation from farmer producer organisations.
India NCDEX maize falls on profit booking, spot unchanged.
Maize futures on the National Commodity and Derivatives Exchange ended lower as traders booked profits after a rise in the last two sessions. The most-active August maize contract on NCDEX ended at 1,175 rupees per 100 kg, down 0.8% from the previous close. Prices of maize have remained subdued in the last one month due to poor demand and high inventories from the kharif crop. Subdued prices of the coarse grain have also been keeping farmers away from taking up its cultivation this kharif season. As of last week, acreage of kharif maize was down 22.6% on year at 491,000 ha.
Ukraine exported more than 2 MMT of rapeseed this season.
In July-April 2017/18 2090.6 KMT was supplied to foreign markets that is much more than in the last three seasons but 20.5% below the 2630 KMT export record set in MY 2008/09. Rapeseed export shipments dropped to 7.4 KMT in April 2017/18 from 11 KMT in the previous month and 50.5 KMT in April 2016/17. The EU continued stepping up imports of Ukrainian rapeseed, absorbing 82% of their total.
The USDA reported all wheat export sales in the week of June 14 at 461,633 MT, on the higher end of expectations.
The USDA reported all wheat export sales in the week of June 14 at 461,633 MT, on the higher end of expectations. That was 23.6% larger than the same week last year and a jump of 52.7% from a week ago. The Philippines purchased 137,000 MT, with Japan buying 118,500 MT. Weekly exports were up 37.71% from the week prior at 426,920, which was still 31,63% below the same week last year. In Japan’s weekly MOA tender, purchased 91,188 MT of combined US (65,943 MT) and Australian wheat. Consultant Agritel is projecting Russia’s 2018 wheat crop to drop to 67.4 MMT. That is on the lower end of most estimates, compared to the USDA’s 68.5 MMT.
Manila Port rice discharge halted by bad weather.
The reason why the rice imports, which are intended for Metro Manila, have yet to be completely discharged from the vessel was due to the weather condition these past few days. Around 25,000 MT of imported rice from Vietnam are being unloaded to trucks at the Naval Supply Depot (NSD) in Subic Bay Freeport Zone.
Weekly world market rice prices:USDA.
Rough rice prices decreased, by $0.22 cents per cwt for long grain and by $0.24 per cwt for medium/short grain, from the previous announcement.
Soybean prices to trade sideways to down.
NCDEX Jul Soybean closed lower due to profit booking by the market participants on expectation of good sowing. However, there expectation good physical demand due to anticipation of higher domestic crushing of soybean after government increase customs duty on crude as well as refine soy oil to 35% and 45% respectively. Prices have been under pressure on forecast of normal rains and lower meal exports data from both SEA and SOPA is weighing on prices this month. Soybean acreage till last week is 56 % higher than at 50,000 ha as compared to the last year acreage. Bangladesh, one of the largest importers of soymeal from India, reduced the import duty to nil which may result into tough competition for the country from South American peers in soymeal exports to Bangladesh.
CBOT spot soybeans consolidate a day after multi-year low.
Nearby soybean futures on the Chicago Board of Trade closed fractionally higher as the market consolidated a day after the front contract fell to a 9-1/2 year low. CBOT July soybeans settled up 1/2 cent at $8.89-1/2 per bushel while new-crop November ended down 1/2 cent at $9.10-1/2. CBOT July soymeal fell $1.30 at $333.20 per short ton. CBOT July soyoil rose 0.52 cent at 29.37 cents per pound. Rebound in soybeans capped by ongoing trade tensions between the United States and top global soy buyer China. Also, forecasts for beneficial Midwest rains this week hang over the market, bolstering early prospects for a big US crop. Ahead of the US Department of Agriculture’s weekly export sales report on Thursday, traders expect the government to report US soybean sales at 400,000 to 1,000,000 tonnes (old and new crop years combined).
European feeds-Soymeal higher as U.S. sell-off abates, Brazil prices firm.
Soymeal on the European meals and feeds market rose after a slight recovery in U.S. futures from the previous day’s sell-off and helped by firm premiums in Brazil. Brazilian high-protein soymeal for July shipment was offered up $7 at $436 a tonne, cif Rotterdam, while Argentine high-protein soymeal for the same period was marked up $2 to $405 a tonne, cif Rotterdam. Rising cash premiums in Brazil, where strong demand from China amid a row with Washington has coincided with logistical backlogs due to a transport dispute, were also supporting European prices. Rapemeal was quoted between unchanged and two euros per tonne higher, after holding up better than soymeal earlier in the week when it was supported by a falling euro.
Jaipur mustard up on limited supply, rise in demand.
Prices of mustard rose in Jaipur, Rajasthan, due to limited supply of the oilseed and a rise in demand from domestic stockists and oil millers. In Jaipur, the benchmark market for the oilseed, prices rose by 5-10 rupees to 4,095-4,105 rupees per 100 kg. Arrivals of mustard in Jaipur were unchanged at 100,000 bags (1 bag = 85 kg). Expectations of a rise in demand during the monsoon also supported prices.
Madhya Pradesh mustard procurement ends; purchases at 119,291 tn.
Mustard procurement in Madhya Pradesh has come to an end with the state government having bought a total of 119,291 tn of the oilseed at minimum support price under the Krishak Samruddhi Yojana. In Madhya Pradesh, around 1.6 mln farmers are registered under the Krishak Samruddhi Yojana scheme which allows them to sell their produce at minimum support prices and avail incentives. This year, the state government is giving an incentive of 100 rupees per 100 kg on mustard procurement. For 2017-18 (Jul-Jun), mustard output in Madhya Pradesh is estimated at 5.3 mln tn, up from 4.5 mln tn harvested last year
Ukrainian farmers started harvesting winter rapeseed.
Harvesting of winter rapeseed has started in the southern regions of the country (Zaporizhia, Odesa, Kherson). Risoil Group has begun receiving rapeseed at its elevator in Rozdilna (Odesa region). The company reports a high oil content in the first rapeseed arrivals: roughly 48%, or more than 50.5% in dry matter terms. This is a high value for the central part of Odesa region early in a season. As of June 18, 2018, farmers had harvested 6 KMT of winter rapeseed from 3 Th ha (out of this season’s projected harvest area of 983 Th ha) with an average yield of 1.74 MT/ha.
NCDEX coriander up 1% on firm demand from stockists.
Coriander futures on the NCDEX rose over 1% due to improved demand from stockists at low price levels. The most active July contract of coriander on NCDEX traded at 4,607 rupees per 100 kg, up 1% from the previous close. In Kota, the benchmark market, badami variety was sold at 4,750 rupees per 100 kg and the eagle variety was quoted at 5,050 rupees per 100 kg, both up 30-40 rupees. Arrivals of coriander in Rajasthan were 9,000 bags (1 bag = 40 kg), up 1,000 bags from the previous day
Russian Ag Ministry planned taking out 1 MMT of grain for reduced freight rates in MY 2018/19.
The Ag Ministry of Russia proposes setting the 2018/19 quota for reduced-tariff grain shipments from remote regions at 1.024 MMT. It is planned to distribute this quota among the following five regions: Omsk (350 KMT), Novosibirsk (294 KMT), Orenburg (150 KMT), Kurgan (130 KMT), and Krasnoyarsk (100 KMT).
Egypt purchased 240 KMT of milling wheat from Romania
On June 19, Egypt purchased 240 KMT of milling wheat from Romania to be delivered on August 1 – 10, 2018 at an average price of USD 218.10/MT C&F. The price in the previous tender equaled USD 224.44//MT C&F.
Morocco wheat production seen flat 4.8 mln tn in 2018/19
Morocco’s soft wheat is forecast to total 4.8 million tonnes in 2018/19. Total wheat production was little changed from the prior season when the soft wheat crop was at 4.89 million and durum wheat at 2.2 million. The forecast crop would, however, be sharply up from 2016/17 when there was a soft wheat crop of just 1.86 million and durum crop of 0.87 million. Soft wheat imports were seen at 3.00 million tonnes in 2018/19, up from 2.66 million in the prior season but below the 4.19 million imported in 2016/17.