Grain market review: Coarse grains
Short covering by funds, in the absence of new bearish news, sparked a small-scale recovery in maize (corn) prices, following recent declines. The European Confederation of Maize Production (CEPM) in its March 19 Corn Market publication said, “US maize prices continue to consolidate with a second consecutive week of gains, following 10 weeks of continuous declines between early January and Feb. 20. This is due to a more cautious attitude on the part of non-commercial funds, which are covering part…
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.
Cargill offers canola program in Canada.
With a rising interest in canola as a renewable fuel feedstock, Canadian growers will be able to access new and growing markets through the Cargill Power Canola program, which will begin enrollment this month for the 2024 crop year. Canada’s Clean Fuel Regulations, the US Renewable Fuel Standard and the 2BS voluntary sustainability program in the European Union recognize canola as a low-carbon intensity feedstock for biofuels when grown using sustainable practices. Cargill Power Canola provides growers access to these…
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,…
Rains boost Australia’s summer crops.
Summer crop prospects for Australia were pronounced “excellent” following well-timed rains in eastern growing areas that boosted expectations for production to 4.3 million tonnes, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) quarterly report released March 4. If realized, 2023-24 summer crop production – which includes sorghum, rice and cotton – would still be 17% below last year but 22% above the 10-year average of 3.5 million tonnes, according to ABARES, which raised its outlook…
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…
Study details Ukraine war’s wheat market impact.
As the second anniversary of Russia’s invasion of Ukraine draws near, a recently published research paper on the long-term impact the war has had on global wheat prices and market responses paints a relatively optimistic picture. The study, which was co-authored by researchers from the University of Illinois and Texas Tech University, found that although prices initially spiked in the first several months after the invasion, they have sharply declined since then as other wheat-producing countries have compensated for the…
Argentina’s wheat production improves
Wheat production in Argentina for 2023-24 is higher than originally expected as yields improved, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
Drought lowers Canada’s 2023-24 wheat production.
Despite a larger planted area, Canada’s wheat production in 2023-24 dropped 7% from the previous year to 31.95 million tonnes, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA). Severely low soil moisture in Alberta and Saskatchewan reduced yields, the FAS said.