Global Ag News Headlines July 22
TODAY—WEEKLY ETHANOL STATS
Overnight trade has SRW down up roughly 1 cent, HRW up 1; HRS Wheat unchanged, Corn is up 2 cents; Soybeans down 3, Soymeal up $0.50, and Soyoil down 35 points.
Chinese Ag futures (Sep) settled up 6 yuan, up 7 in Corn, down 21 in Soymeal, up 74 in Soyoil, and up 88 in Palm Oil.
Malaysian palm oil prices were up 60 ringgit at 2,701 (basis October) at midsession on lower output concerns, labor shortages.
U.S. Weather Forecast
The Midwest 6 to 10 day has the GFS model showing rainfall in most of the Midwest with good coverage; the European model has lighter rainfall amounts favoring the southern sections of the Midwest; temps are seen near average for the rest of the week turning a bit above average later but, no severe heat.
The 11 to 16 day outlook for the Midwest has cooler temps and close to average rainfall across the Midwest through Aug 5th.
The player sheet had funds net buyers of 5,000 contracts of SRW Wheat; net sold 17,000 Corn; sold 6,000 Soybeans; net sold 2,000 lots of soymeal, and; bought 1,000 Soyoil.
We estimate Managed Money net short 10,000 contracts of SRW Wheat; short 140,000 Corn; net long 85,000 Soybeans; net short 30,000 lots of Soymeal, and; long 25,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures down roughly 2,600 contracts; HRW Wheat down 85; Corn up 8,500; Soybeans up 8,800 contracts; Soymeal up 4,100 lots, and; Soyoil up 1,500.
There were changes in registrations (Soyoil down 170)—Registrations total 95 contracts for SRW Wheat; ZERO Oats; Corn ZERO; Soybeans ZERO; Soyoil 2,786 lots; Soymeal 511; Rice 174; HRW Wheat 47, and; HRS 1,387.
Tender Activity—Egypt bought 115,000t Ukrainian wheat—Jordan bought 60,000t optional-origin wheat—Pakistan bought 300,000t Black Sea region wheat—Taiwan bought 98,320t U.S. wheat—Philippines seek 110,000t optional-origin feed wheat—S. Korea bought 134,000t optional-origin corn, 60,000t feed wheat—Syria seeks 50,000t optional-origin soymeal, 50,000t corn.
Bayer AG launched a pilot program in the United States and Brazil on Tuesday that will pay farmers for capturing carbon in cropland soils, making it the latest agriculture company to capitalize on environmental initiatives; the company seeks to enroll about 1,200 row crop farmers in its Bayer Carbon Initiative in the first season, scale up in upcoming seasons, and ultimately expand to other countries; in Brazil, Bayer expects to invest 5 million euros ($5.76 million) via the program over three years; executives declined to disclose the overall program cost in both countries.
Manitoba crop report
Crops are generally in average to good condition, excepting low-lying areas subject to frequent rainfall over the past three weeks; winter cereals are reaching the soft dough stage, and turning color; harvest is expected to begin in about two weeks.
Brazil’s July soybean exports are expected to reach 8.8 million tons based on shipping line-up data, up from 6 million tons in the same month a year ago, according to grain exporter association Anec
Brazil’s July corn exports are forecast at 5.64 million tons at the end of this month, slightly lower than forecast last week
Argentine grains exporters told Chinese importers that they were asking for “inappropriate” guarantees that crops being shipped from the South American country were free of the coronavirus, according to a letter sent to importers in late June; the letter was signed by the CIARA-CEC grains exporters and oilseed crushers chamber; a source at CIARA-CEC said the chamber was in contact with its counterparts in Brazil, Canada and the United States, which together provide most of the world’s soybeans, corn and soymeal livestock feed used to fatten hogs, poultry and cattle throughout Asia; the other major exporting countries are also against the coronavirus guarantee required by China.
Grains powerhouse Argentina is getting hit by a second swarm of locusts arriving from neighboring Paraguay, Argentina’s Senasa agricultural health inspection agency said, putting farmers on notice about possible crop damage; the new swarm is concentrated in the province of Formosa in north-east Argentina, on the Paraguay border; the area is not part of Argentina’s main Pampas grains belt, but it could hurt crops if the low temperatures of the Southern Hemisphere winter do not keep the swarm from spreading too far southward; this second wave is in a cattle ranching area where there are not many crops.
Ukraine’s grain stocks stood at 5.53 million tons as of July 1, down from 9.2 million tons at the same point in 2019, the APK-Inform consultancy said; stocks at large and medium-sized agricultural companies included 1.81 million tons of wheat, 2.03 million tons of corn and 1.4 million tons of barley.
The Saudi Cabinet on Tuesday amended a decision for Saudi Arabia’s state grain buyer SAGO to purchase up to 1.5 million tons of local wheat per year for five years from farmers if they choose to switch back from other corps at prices determined by SAGO.
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