Grain market review: Oilseeds
World oilseed prices rose in July after months of falls, with sunflower, notably, rising because of uncertainty over Black Sea shipments and new crop supplies looking tight ahead of harvest. Improving crop conditions in the first half of August in the United States triggered new declines, although it remains to be seen what impact the heatwave in the US Midwest in late August will have on the soybean crop. On Aug. 21, soybean futures on the Chicago Board of Trade…
Brazil’s corn, and soybean estimates were revised higher
Brazil’s crop estimating agency, Conab, on Aug. 10 raised its official corn crop estimate for the current marketing year to a record 129.9 million tonnes, up 2.2 million from its previous estimate. The upward revision is due to safrinha corn production being higher than previously forecast. Conab also raised its 2022-23 corn exports forecast to 50 million tonnes, an increase of 2 million from its prior outlook.
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…
Russia’s gambit in Ukraine
Russia’s exit from the Black Sea grain deal, followed by barrages of strikes unleashed on ports in Odesa, the Mykolaiv River, and most recently, the Danube River, threatens to plunge the Ukrainian grain industry into chaos.
Canada plants more wheat at the expense of other grains
Canada’s wheat area hit its highest level since 2001 as farmers looked to benefit from strong prices and lower input requirements, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture. Total planted area for 2023 was 10.9 million hectares, an increase of 6.4% from 2022. The increase came at the expense of oats, rye, mixed grains and lentils, the FAS said
Russia hits grain infrastructure on Danube River
Russia has continued its attack on Ukraine’s grain infrastructure, destroying a grain warehouse on the Danube River in a drone attack on July 24, Reuters reported. Since leaving the Black Sea Grain Initiative on July 17, Russia has targeted ports in Odesa, Mykolaiv and Chornomorsk, damaging grain terminals, port infrastructure and grain.
Russia Pulls out of Black Sea grain deal
Russia announced on July 17 it was suspending its participation in the Black Sea Grain Initiative which for nearly a year has allowed safe passage of Ukraine grain exports via the Black Sea in the midst of a war between the two countries. The deal, which was brokered by the United Nations and Turkey, was set to expire at 5 p.m. today. The last shipments from Ukraine departed from the Port of Odesa on July 16.
US grain group objects to ultra-processed focus
The term “ultra processed” is ill-defined and not deeply studied and would be of questionable value as a key criterion for dietary guidance, according to The Grain Chain, a grains industry coalition. The group’s views on ultra-processed foods were included in a lengthy letter sent to the US Department of Health and Human Services (HHS) in response to a request for comments in connection with the first meetings of the 2025 Dietary Guidelines Advisory Committee. The Dietary Guidelines for Americans…
Canadian wheat plantings have reached a recent high.
Area planted to wheat in Canada surged to its highest level in more than two decades, one of several crops to see an uptick in planting in 2023, according to the June 2023 field crop survey from Statistics Canada released June 28. In addition to wheat, other crops with notable increases in plantings in 2023 included canola, barley, corn for grain and soybeans. Fewer acres were planted for oats, lentils and dry peas, Statistics Canada said.
Ukraine convinced Russia will exit grain deal.
Ukraine is nearly certain Russia will leave the Black Sea Grain Initiative as its renewal date approaches because Russia is developing an alternative for its ammonia exports, Reuters reported, citing a senior Ukrainian diplomat. The United Nations and Turkey brokered the Black Sea deal in separate agreements with Russia and Ukraine in July 2022 to alleviate a global food crisis worsened by Russia’s Feb. 24, 2022, invasion of Ukraine.