Focus on Saudi Arabia
Saudi Arabia produced nearly double the wheat expected in the 2022-23 marketing year and is on track for similar results in 2023-24 as government purchase prices remain high. Production totaled 1.18 million tonnes in 2022-23 and is estimated at 1.2 million tonnes in 2023-24, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA). The government offered a purchase price of $466.70 per tonne.
Discord impacting EU grain, feed industries
Intensifying protests have left the Ukrainian-European Union (EU) border nearly paralyzed, jeopardizing one of the export lifelines of the reeling Ukrainian economy. The rally backed by farmers all over the bloc, however, is increasingly seen as an attempt to revolt against the EU’s environmental policy. Footage of grain spilled from a truck near the Shehyni-Medyka checkpoint on the Ukraine-Poland border has quickly become viral on social media networks, turning into a symbol of the growing dissent on the economic and,…
Shifting population and income levels shape global ag demand
Changes in population and income levels will shift food demand and placement of corporate assets, Michael Zerr, long-term model lead, Cargill, Minneapolis, Minnesota, US, told attendees at the opening session of the International Sweetener Colloquium on Feb. 26. When you think 10 years out, it’s not so much about prices as “how does Cargill place assets across the supply chain,” Zerr said. Long-term drivers are population growth and gross domestic product.
Grain market review: Oilseeds
The popularity of soybeans with US producers, as they plant for 2024-25, has put pressure on prices, particularly following an upward revision to the US Department of Agriculture’s (USDA) planted area forecast. Big Brazilian and Argentine production at the same time as softening Chinese demand also contributed to the forecast. In a paper, “Grains and Oilseeds Outlook for 2024,” published Feb. 15 at the Agricultural Outlook Forum 2024, the USDA said: “Soybean area is expected to increase as demand for…
FAO forecasts record cereal output
Global cereal production this year is forecast to reach a record 2.81 billion tonnes, according to the Food and Agriculture Organization of the United Nations’ latest Cereal Supply and Demand Brief released on Nov. 3. Of note was higher projected coarse grain production in China and most of West Africa and lower forecasts for the United States and the European Union. Wheat output forecasts were raised for Iraq and the United States and revised downward for the European Union and…
Argentine wheat crop revised lower.
Due to widespread dry conditions, Argentina’s wheat production forecast for the 2023-24 marketing year has been revised lower in the most recent Global Agricultural Information Network report from the US Department of Agriculture’s Foreign Agricultural Service (FAS). The FAS dropped its projections for Argentine wheat output by 2 million tonnes from the previous forecast to 14.5 million tonnes. If realized, the total would still be 2 million tonnes higher than the country’s 2022-23 drought-stricken crop. Argentina, typically the largest wheat…
Russia signs grain export deal with China.
A Russian export company has signed a deal to export 70 million tonnes of grain, legumes and oilseeds to China, Reuters reported on Oct. 18. The company, EPT, said the contract was for 12 years with a possible extension, according to Reuters.
Argentina anticipates rebound in soybean crop
Argentina’s soybean crop is expected to rebound in the 2023-24 crop year to an estimated 50 million tonnes, up from 21 million tonnes last season, according to a Sept. 7 report from the Buenos Aires grain exchange. The country is a top exporter of processed soybeans and also a major corn and wheat supplier. A historic drought sharply reduced production last season.
Romania to boost Ukrainian grain exports
With additional staff and the completion of EU-funded infrastructure projects, Romania said it could double its monthly transit of Ukrainian grain to its Black Sea port of Constanta to 4 million tonnes in coming months, particularly via the Danube River, Reuters reported, citing Romania's minister of transport. Ukraine is one of the world’s top grain exporters, and Russia has been attacking its agricultural and port infrastructure after refusing to extend the Black Sea Grain Initiative brokered by the United Nations…
Cargill revenues rise 7% to $177 billion
Excellent execution” and “customers’ partnerships” helped Cargill deliver an increase in revenues in the fiscal year ended May 31. At $177 billion, revenues were up 7% from fiscal 2022, the company noted in its annual report. Cargill said the rise in revenue in part reflected the benefit of several investments undertaken in 2023, including a new joint venture with Wayne-Sanderson Farms, which the company said positions it for growth in North American poultry. Additionally, Cargill acquired Owensboro Grain Co., which…