US, Russia may hold key for bullish market
A ridge of high pressure evolved recently over the heart of Russia’s grain production region grabbing some attention in the commodity trade. Ridges of high pressure aloft over Russia tend to occur in years of El Niño to La Niña transition. Sometimes a similar ridge of high pressure evolves over the central United States impacting the Great Plains, western Corn and Soybean Belt and the southeastern Canada Prairies with drier and warmer-than-usual weather. Producers and traders who are looking for…
Larger second crop to boost Argentina’s soy production
Argentina’s soybean production is expected to increase in 2024-25, with a larger planted second soy crop, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA). Production is estimated at 51 million tonnes, up 1.5 million tonnes from the previous harvest. Soybean planted acreage is forecast to increase to 17.8 million hectares with an increased second soy crop planting due to fears of a dry year and the potential threat of the chicharrita…
New Orleans leads global grain ports
The port region of New Orleans, Louisiana, US, was the world’s No. 1 grain and oilseeds export hub in 2023, leading the two major South American hubs, according to a report published by Argentina’s Rosario Grains Exchange. The Port of New Orleans Region was listed first at 63.4 million tonnes of grains and oilseeds exported, while Santos port in Brazil exported 62.3 million tonnes, followed by Argentina’s Rosario port at 42.4 million, Belém, Brazil, at 38.17 million, and Vancouver, British…
Argentina investing in new grain port
The Argentine government said it plans to invest approximately $550 million to build a new grain port in the Rosario region. The region is considered a vital agricultural center for Argentina, accounting for more than 80% of the country’s agricultural and agro-industrial exports.
USDA: Corn, wheat acres down; soy up
The US Department of Agriculture’s (USDA) March 28 Prospective Plantings report provided a few surprises along with insight into potential 2024 acreage and crop sizes. This year’s report comes with mostly favorable weather across key growing areas, along with commodity prices below those of the past couple of years in many cases.
CoBank: Grain, oilseed prices continue to slide
Grain and oilseed prices continued to slide last quarter under pressure of a strengthening US dollar, arrival of the South American harvest and plentiful domestic inventories, according to a new quarterly report from CoBank’s Knowledge Exchange. Corn, grain sorghum, barley and oats all saw major reductions since last year, while soybeans, cotton, spring wheat and durum wheat each experienced increases, the report said.
Focus on Thailand
Although rice production is holding steady, weather-related challenges are a constant worry for Thailand, which relies heavily on the crop as a food staple and export commodity. More than 60% of its agricultural land is allocated for rice farming, which is heavily dependent on water. Farmers typically grow rice twice a year during the wet and dry seasons. Production estimates for 2023-24 call for 19.9 million tonnes of rice, a 5% drop from 2022-23 due to reduced water availability during…
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…