Grain Highlights

02 Nov, 2017
Grain Highlights
From the beginning of the season Russia has exported 2.2 million tonnes of barley, which is 64% more than last year. On the export list of the country barley ranks a second place with a share of 13%.

Wheat

-Rabobank has lowered its forecast for wheat production in Australia in the new season to 20.9 million tonnes, which is 14 million tonnes less than the previous season, and is the lowest level for the past 10 years. Thanks to the high initial stocks of wheat, in 2017/2018  Australia can export 17 million tonnes of the culture.
- FAS USDA lowered its forecast for wheat imports in Jordan in 2017/2018 to 1.1 million tonnes, which is 200,000 tonnes less than the USDA forecast, but is 19% more than the previous season.

- Taiwan's Mill Association has purchased 86,000 tonnes of wheat from the United States at a price of 203.44 - 288.89 USD / tonne C & F.
- China and Russia signed a phytosanitary protocol allowing exports of Russian wheat and oats.

 

Grain

- South Korea's NOFI has purchased 134,000 tonnes of corn of random origin at 185.25 - 186.25 USD / tonne C & F with delivery from 25.02.2018 to 05.03.2018.
- Saudi Arabia has opened its market for meat (large and small cattle, chicken and by-products) from Russia.
- Since the beginning of the season, 2.2 million tonnes of barley have been exported from Russia, which is 64% more than the previous year. On the export list of the country the barley ranks second with a share of 13%. The largest buyers were Saudi Arabia 926,000 tonnes, Iran 591,000 tonnes and Jordan 177,000 tonnes. In 2016/2017 the export of barley from Russia decreased by 1/3 compared to 2015/2016 to 3 million tonnes. Then the major customer is Saudi Arabia - 1.1 million tonnes of barley bought from Russia.

- FAS USDA raised its forecast for barley imports to Saudi Arabia by 100,000 tonnes to 800,000 tonnes, which is at the level of domestic consumption. Imports of corn are also downgraded to 600,000 tonnes, which is 400,000 tonnes less than the USDA forecast.
- In September, North Korea's grain imports from China dropped by 40% compared to the previous month to 17,375 tonnes, rice 2,396 tonnes (-67.6%) and corn 1,160 tonnes (-92%). It is assumed that the reason for the decline is the lack of currency in South Korea.

- In the week October 23th-27th, corn prices in Russian ports stabilized after several weeks of growth. Corn's average export prices reached 165 USD / tonne FOB, and in October they increased by 3 USD / tonne. SovEkon lowered its forecast for the corn crop in Russia by 1.5 million tonnes to 13.7 million tonnes. According to SovEkon, the USDA forecast for 27 million tonnes of corn crop in Ukraine is increased.

 

Oils and vegetable oils

- During the period July - September 2017, the revenue of the US company ADM fell by 44% over the previous year to $ 192 million. The profitability of sales of US corn and soybeans is down by 55%. From the beginning of 2017/2018 the exports of US corn dropped by 55% to 5.07 million tonnes, which is 45% less than the average annual level. During the period, US soybeans exports according to ADM were 12.3 million tonnes (-9.5%). In September, soybeans exports from Brazil to China are 5.94 million tonnes (+ 58%). In September, 937,262 tonnes of soybeans were exported from the United States to China (-31%). During the quarter, for ADM the profitability of the processed oil crops went down by 17.9% due to the low margin for processors. The profitability of processed corn increased by 18.2%

- According to Oil World, in 2016/2017 EU countries have reduced the import of soybeans to 20.15 million tonnes (20.9). Imports of rapeseed groats reached 233,000 tonnes (341,000), palm fungal 2.06 million tonnes (2.2), sunflower 3.87 million tonnes (3.34), which is a record-high level since 2011/2012 until now.