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.
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.
Bunge Q1 earnings fall short of last year’s record
First-quarter earnings at Bunge Ltd. fell short of last year’s record results, dragged down in part by sluggish oilseed processing results in Argentina, Asia and Europe, which more than offset strong crush margins in North America and Brazil. Bunge net income in the first quarter ended March 31 was $632 million, equal to $4.15 per share on the common stock, down 8.2% from $688 million, or $4.48 per share, in the first quarter of fiscal 2022. Sales totaled $15.33 billion,…
Australian wheat output projected to decline
After three consecutive years of record-setting wheat crops in Australia, production in marketing year 2023-24 is forecast to dip 25% from the previous year to what would still be the fourth largest total over the last 10 years, according to a Global Agricultural Information Network report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture. “Favorable conditions around the time of winter grain planting across most production areas of Australia bodes well for the establishment and early…
Bunge to acquire multi-oil refinery
Bunge Ltd., through its Bunge Loders Croklaan joint venture with IOI Corporation Berhad, has entered an agreement to acquire a newly constructed, port-based refinery from Fuji Oil New Orleans, LLC. The refinery is located in IMTT’s (International-Matex Tank Terminals) Avondale Terminal, Louisiana. Financial terms of the agreement were not disclosed.
Australia, China seek truce in barley dispute.
Australia announced on April 11 that it has taken steps to attempt to reopen the Chinese market to Australian barley, which essentially has been banned by China during the past three years after its government imposed an 80% import tariff in 2020.
US spring wheat plantings at a 50-year low
The US Department of Agriculture’s March 31 Prospective Plantings report brought some surprises but may ultimately yield to weather as the primary final planting factor this spring. The USDA said farmers intend to plant 91.996 million acres to corn in 2023, up 4% from last year, 87.505 million acres to soybeans, up 0.1%, and 49.855 million acres to all wheat, up 9%, including winter wheat, up 13%, durum, up 9% and spring wheat other than durum, down 2.4%. Area planted…
Focus on South Korea
With less than a quarter of its land used for agriculture, South Korea relies heavily on imports, particularly wheat and corn, while producing a significant amount of rice.
Grain market review: Oilseeds
A likely record Brazilian crop, with Argentina’s production problems already factored in, and subdued demand were at the top of the list of factors behind easing oilseeds prices in recent weeks.