Bunge, Viterra reportedly inching closer to deal.
Negotiations of a potential merger between agribusiness giants Bunge Ltd. and Viterra have reached a critical stage as the companies attempt to put the final touches on a deal that would combine two of the world’s largest agricultural traders, Reuters reported on June 8, citing sources familiar with the matter. The sources told Reuters that Bunge, whose market value is about $14 billion, would pay for most of the deal with stock as well as cash and debt financing from…
Wheat prices rise with Ukraine dam breach.
As millions of liters of water poured through a breached dam in southern Ukraine threatening regional villages and water supplies, worries about an escalation of the war between major grain exporters Russia and Ukraine sent Chicago wheat up 2% to a three-week high on Tuesday, Reuters reported. The Russian-controlled Nova Kakhovka dam on the Dnipro River provides water to a swathe of southern Ukraine’s agricultural land, including the Russian-occupied Crimean peninsula, as well as cooling the Russian-held Zaporizhzhia nuclear plant.
China’s wheat quality is taking a hit from heavy rains ahead of harvest.
Heavy rain just ahead of harvest in China’s central Henan province is increasing wheat prices and raising concerns about quality, Reuters reported. The rain is causing some of the wheat to sprout or become affected by blight, according to videos on social media and a local grain dealer.
Ukraine says it has alternatives if Black Sea Grain Initiative not extended
Ukraine said it has alternate ways of transporting grain if the Black Sea agreement is not extended on May 18, Reuters reported. The agriculture ministry said not extending the agreement, as Russia has threatened, would not be an “apocalyptic scenario.”
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…
US soft red winter wheat forecast at 405 million bushels
A panel of flour millers and wheat merchandisers on April 25 forecast soft red winter wheat production in the United States in 2023 at 404.923 million bushels, up 68.297 million bushels, or 20%, from 336.626 million bushels in 2022. The soft red winter wheat crop as projected would be the largest dating back to the 2014 crop year, when 454.531 million bushels were harvested, and the second largest since a recent production peak of 568.481 million bushels in 2013.
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.
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…
Cargill to stop elevating Russian grain exports.
Citing mounting challenges to its grain export operations in Russia, Cargill will cease elevating Russian grain in the new export season that begins July 1.
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.