Grain Highlights

30 Nov, 2017
Grain Highlights
According to Shanghai JC Intelligence Co Ltd, in 2017/18, corn import to China will reach 5 – 5.5 million tonnes. The Ministry of Agriculture expects corn crop in amount of 210.1 million tonnes.

Wheat

- In 2018, in India, growth in grain production is expected due to higher government purchase prices. So the country can give up completely the import of these crops for the first time in the past three years. As of November 1, 2017 the ending stocks of wheat in the country are estimated at 23.9 million tonnes, which is 27% more than the previous year.

- Iraq accepted orders for the purchase of 50,000 tonnes of hard wheat. The lowest price is offered for Australian wheat - 283.35 USD / mt, C & F. Other Australian offers are priced at 288 - 288.35 USD / mt, C & F, and US wheat is at 294.47 USD / mt, C & F.

- Japan purchased 151,800 tonnes of milling wheat from the United States, Canada and Australia for shipment from January 16 to March 5, 2018.

- According to latest USDA forecast, in 2018, the US wheat areas will reach 45 million acres (46), which will be the lowest level since 1919.

- On November 28, 2017, Egypt purchased 120,000 tonnes of wheat from Russia at the following price levels:

60,000 tonnes of wheat at price of 192.99 USD / mt, C & F + freight 14.29 USD / mt, a total of 207.28 USD / mt or 2.17 USD / mt cheaper than the previous auction.

60,000 tonnes of wheat at price of 193.0 USD / mt, C & F + freight 14.29 USD / mt, a total of 207.59 USD / mt or 2.41 USD / mt, cheaper than the previous auction.

 

Grain

- As of November 29, 2017, 954,500 tonnes of corn on 124,000 hectares (97.6% of the area) were harvested in Belarus at average yield of 9.77 mt/ ha.

According to data of the Ministry of Agriculture of Ukraine, as of November 27, 2017 almost 14 million hectares of grain crops (96%) in the country are harvested , 59.4 million tonnes of grain are harvested at average yield of 4.25 mt / ha. 21.1 million tonnes of corn on 3.95 million hectares (88%) were harvested at average yield of 5.35 mt/ ha.

- Half of the barley areas in Australia are harvested , but export deals are very active. For export during the period November - December contracts for 537,000 tonnes of barley have been signed so far. The major customer is China - 234,000 tonnes, followed by Singapore 45,000 tonnes, Indonesia 26,000 tonnes, Vietnam and Japan. Until now, the EU and the Black Sea region have dominated the Chinese market.

- According to latest USDA estimate, in 2018, US corn areas will be 91 million acres, which is 600,000 acres more than 2017 but 3 million acres less than 2016. Corn crop will be 368.8 million tonnes at average yield of 173.5 bushels / acre. US ending stocks of corn in 2018/19 will be 66.22 million tonnes (63.17 million tonnes at the end of 2017/18).

- According to forecast of Shanghai JC Intelligence Co Ltd, in 2017/18 corn import to China will reach 5 - 5.5 million tonnes. The Ministry of Agriculture expects corn crop of 210.1 million tonnes.

 

Oil crops and vegetable oils

- In 20174/18, soybean production in Canada will grow to 8.3 million tonnes at 6.6 million tonnes in the previous season, according to latest IGC forecast. Soybean stocks in the country will be 0.8 million tonnes (0.4).

- Over the past 16 years, vegetable oil consumption in China has grown to 38.82 million tonnes in 2016/17, at only 13.89 million tonnes in 2000/01. The consumption of soybean oil is 15.87 million tonnes (46%), that of rapeseed oil - 5.6 million tonnes (16%), palm oil 4.8 million tonnes (14%) and others, incl. 0.85 million tonnes of sunflower oil 2%). During the period, vegetable oil import to the country reached 9.2 million tonnes (1.32).

- In 2018, rapeseed areas in the UK will grow by 9% compared to 2017. The area will reach 616,000 hectares, which is 18% less than the record set in 2012.

- According to latest USDA forecast, in 2018, soybean areas in the US will reach 91 million acres, exceeding the current record of 2017-90.2 million acres. Soybean production will reach 118.6 million tonnes at average yield of 48.4 bushels / acre and ending stocks 10.23 million tonnes (11.56).

- The annual growth in vegetable oil consumption in the world in 2017 - 2030 will be 3% at 5% in 2010-2017 according to forecast by LMC International. In 2017 - 2030, the growth in the consumption of vegetable oils for biofuel production will be 2%, 10% in 2010-2017, and 15% in 2000-2010.