Grain Highlights 15.12.2020

15 Dec, 2020
Grain Highlights 15.12.2020
The Russian government has announced the official measures that will be introduced aiming to stabilize food prices in the country.

Wheat

- During the period 15.02 - 30.06.2020, the government of Russia will introduce an export quota of wheat at the amount of 17.5 million tons. For exports under this quota, the export duty will be EUR 25 / ton and outside the quota 50% of the customs value of wheat, but not less than EUR 100 / ton.

- According to APK - Inform, in the period July - October 2020/21 16.6 million tons of wheat were exported from Russia, which is 5% more than the previous year - 15.4 million tons and is the second indicator after the record of 2018/19 - 17.1 million tons. The largest importers of Russian wheat are:

  • Egypt with a share of 20%
  • Turkey- 18%
  • Bangladesh- 7%

 In 2020/21 the export potential for Russian wheat reached 40 million tons (+ 20% compared to 2019/20) and it has already been 41% realized.

- During the week of December 7-13, 267,180 tons of Russian grain (this week entirely wheat) were exported from the Russian port of Novorossiysk, which is 25.7% less than the previous week, but 70.8% more than the previous year.

- As of 10.12.2020 in Argentina, 57% of the areas sown with wheat or 6,652 million hectares have been harvested. A year earlier, the harvested area was 6.95 million hectares (60%).

 

Grain

- According to Statistics Canada, in the week 30.11 - 06.12.2020 338,700 tons of wheat were exported from Canada compared to 230,100 tons a week earlier. Other weekly exports reached:

  • corn- 31,200 tons (11,000)
  • soybeans- 388,500 tons (203,200)
  • durum- 64,300 tons (161,300)
  • barley- 103,600 tons (117,700)
  • canola- 254,500 tons (265,900)

During the period 01.08 - 06.12.2020 the total exports amount to:

  • wheat- 7 million tons (+21%)
  • durum- 1.9 million tons (+9%)
  • barley- 1.4 million tons (+109%)
  • canola- 4.5 million tons (+38%)
  • soybeans- 2.3 million tons (+44%)

- On 10.12.2020, a group of Philippine importers purchased 100,000 tons of feed wheat and 90,000 tons of soybean meal. They bought Australian wheat at a price of 260 - 265 USD / ton C&F and delivery February - March, and soybean meal from the US with delivery March - April.

 

Oilseeds and vegetable oils

- The Russian government announced that an agreement will be concluded with sunflower oil producers to reduce product prices on the market to 110 rubles / liter by 20.12.2020.

- During the week of December 7-13, 53,000 tons of sunflower oil were exported from Russian ports.

- In November, 276,306 tons of rapeseed were exported from Ukraine, and in October- 315,600 tons. In the first five months of the season, exports reached 2.2 million tons.

- After the rainfall in Argentina, soybean sowing is accelerating. According to Buenos Aires Grain Exchange, as of December 9, 2020, 57.1% of the planned areas were sown in the country, which is 4.4% less than the previous year.

- According to the Central Bank of Paraguay, in the period January - November the country exported 6.41 million tons of soybeans, which is 33% more than the previous year. The largest customers are Argentina with 4.9 million tons and Brazil with 715,700 tons. Exports of soybean meal were 1.9 million tons (+11%) and soybean oil- 593,000 tons (+4%).

- In their December forecast, analysts from Oil World lowered their forecast for the global soybean production in 2020/21 to 359.3 million tons from 361.7 million tons in their previous estimate. The soybean production in Brazil is expected to reach 129.5 million tons (-1.5 million tons) and in Argentina- 48.5 million tons (-1). If the drought in South America remains, we will see further drops ​​in the forecast. Soybean processing in the world is predicted to reach 321.5 million tons (+12.4 million tons compared to 2019/20). Total soybean consumption estimate was increased to 365.5 million tons (+13.5).