Wheat

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.

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.

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.

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.

Prices of wheat increased around 25 rupees per 100 kg in the key wholesale market of Indore in Madhya Pradesh due to good demand from flour mills and bakery product manufacturers. Wholesale price of mill quality wheat in Indore was at 2,025 rupees per 100 kg. In Kota market, price of the food grain was at 1,900-1,925 rupees per 100 kg, up 10-15 rupees from the previous session. Food Corp of India sold 115,200 tn of wheat in the eighth round of auctions under the open market sales scheme for 2018-19 (Apr-Mar).

Food Corp of India sold 115,200 tn of wheat in the eighth round of auctions under the open market sales scheme for 2018-19 (Apr-Mar). The state-run agency had offered 1.8 mln tn of the grain at the auction.

Wheat futures saw Turnaround losses of 8 to 9 1/2 cents in the CBT and KC contracts, with MPLS down 4 to 6 cents. September showed thin trade. Crop Progress report indicated that 93% of the US spring wheat crop was harvested as of Sunday, 8% faster than the average. The winter wheat crop was shown at 5% planted, even with the normal pace and last year. Ahead of the monthly USDA report, projecting the USDA will trim new crop world ending stocks for wheat by 1.37 MMT to 257.58 MMT. The French wheat crop is estimated at 34.55 MMT, down 5.5 MMT from their August number.

Australia was expected to produce 19.1 million mt of wheat in the 2018-19 (October-September) season, down 10% from 21.2 million mt in 2017/18. The decline in estimate is primarily attributed to reduced crop prospects from exceptionally unfavourable seasonal conditions in Queensland, New South Wales and parts of Victoria and South Australia. In New South Wales, the well below average rainfall during the planting window resulted in much less area planted to winter crops than was initially intended. As a result, wheat production is forecast to fall by 44% to 2.5 million mt in 2018-19.In Queensland, the dry conditions and low levels of soil moisture reduced potential yields with wheat production forecasted to be around 525,000 mt, down 23% from the previous harvest. South Australian wheat production is forecasted to fall by 10% to 3.7 million mt due to 13% decline in average yield. Timely rainfall in early spring will be critical to ongoing crop development in many cropping regions in eastern states (including South Australia) because of low levels of soil moisture.

The expected wheat production this year is 5.4 million tonnes. There is enough bread wheat despite concerns. The industry has similar data – an average yield of about 4,600 kg/ha. Its quality is different – it is high in areas with no rainfall during the harvest, but in the rest pre-harvest sprouting is observed. Wheat prices are about 25% higher this year. On average, bread wheat is traded at BGN 354 a tonne compared to BGN 270 a tonne in 2017, while feed wheat is sold on average for BGN 318 a tonne compared to BGN 254 last year.

Japan will sell imported wheat to domestic millers at an average price of 55,560 yen ($498) per tonne in October to March, up 2.2 percent from the previous six-month period. The move reflects higher wheat prices in its main suppliers and higher shipping rates due to oil prices.

Prices of wheat in the key wholesale market of Delhi and Indore remained steady as there was adequate supply to meet the demand from flour mills. Wholesale price of mill quality wheat in Delhi and Indore was at 2,000 rupees per 100 kg. Subdued arrivals of the food grain from key producing states due to a lean season is seen supporting price of wheat in the coming days. Demand from bulk buyers is seen improving this month as the base rate for wheat auction under open market sale scheme will be higher in October at 1,925 rupees per 100 kg, against 1,900 rupees till September-end.

Andhra Pradesh State Civil Supplies Corp has invited bids to buy 14,419.17 tn of wheat and 7,210 tn each of chana and jaggery (white), through an auction on NCDEX e-Markets.

NCML’s second advanced estimate for 2018-19 season sees production at136.75 million tonnes. The highly erratic monsoon and its obscure spread may reduce foodgrain output in the ongoing kharif season to 136.75 million tonnes (mt) — nearly 2.83 per cent lower than the 140.73 mt produced in 2017-18. The drop in overall kharif production is on expected lines despite a pick-up in the monsoon in July and August. While over 20 per cent of the country faced floods, half of the country’s 36 meteorological subdivisions are reeling under a rainfall deficit of over 10 per cent.