Grain Highlights 21.12.2020

21 Dec, 2020
Grain Highlights 21.12.2020
Wheat harvest in Argentina is now 66% completed. 9.32 million tons of wheat have been harvested with an average yield of 2.31 t/ha. With this average yield, production is expected to reach 14.1 million tons, which is a catastrophically low level.

Wheat

- In November, Brazil imported 284,072 tons of wheat, which is 42.8% less than the previous month and 25.6% less than prior year. It is also the lowest level in November for the last eight years, according to Abitrigo. The largest supplier is Russia with a share of 32.7%, followed by the United States with 22% and Argentina with 21.3%. Since the beginning of the year, total wheat imports are 5.759 million tons (-1%), with Argentina having the largest share of 75.2%, followed by the United States with 10.8% and Russia with 4%.

- According to Stratégie Grains' forecasts, the wheat production in the EU (+Great Britain) will reach 144.6 million tons in 2021/22 compared to 129 million tons in 2020/21. The production in the UK is expected at 15 million tons (+5 million tons compared to the current season). An increase in the indicator is expected for Bulgaria, Romania, France and Germany, and a decrease for Spain, Poland and the Baltic States. Next season, the EU corn production is predicted to reach 63.5 million tons (+ 3%) and barley production- 61.3 million tons (-4%).

- In the period 1-16 December, 1,005 million tons of wheat were imported in Egypt from Russia, France, Lithuania and Ukraine.

 

Grains

- According to data from the State Statistics Service of Ukraine, as of 18.12.2020, 23.87 million tons of grain were exported from the country (-4.51 million tons compared to 2019/20), including:

  • wheat- 12.21 million tons (-2.08)
  • barley- 3.74 million tons (+83,000 tons)
  • corn- 7.54 million tons (-2.56)

The exported flour is 74,100 tons (-101,100), incl. wheat flour 73,500 tons (-100,700).

- APC - Inform have lowered their forecast for the export of corn from Ukraine in 2020/21 to 23 million tons (-9% compared to November and 28.7 million tons in 2019/20). The corn production in the new season is estimated at 29 million tons (-9% and -19%).

- The European Commission has raised its expectations of the EU corn production (+UK) in 2020/21 to 62.5 million tons (60.2 million tons in November). Imports will reach 19 million tons (+2). The wheat production is predicted at 116.1 million tons (115.9), exports remain unchanged at 24 million tons.

- According to Statistics Canada, in the week of December 7-13, grain exports from Canada remained at a high level of 1.33 million tons compared to 1.34 million tons a week earlier. Exports included:

  • wheat- 409,500 (338,700)
  • derem- 188,300 tons (34,300)
  • corn- 48,200 tons (31,200)
  • canola-308,600 tons (254,500)
  • soybeans- 233,200 tons (388,500)

- As of December 7, 2020, 77% of the crops from the new corn production are in good condition in the Brazilian state of Paraná (75% a week earlier and 90% on average for the last five years). The improvement is mainly due to rainfall. However, they are not enough for stable and long-term plant development. Therefore, Soyabean & Corn Advisor Inc has lowered its forecast for the country's corn production in 2020/21 by 2 million tons to a total of 102 million tons.

- According to the Buenos Aires Grain Exchange, as of 16.12.2020, 68% of the planned 17.2 million hectares for soybeans have been sown in Argentina, which is an increase of 11% for the week. The sowing rate is 2% lower than last year. 95% of the crops are in good and satisfactory condition (95% a week earlier and 98% a year earlier). Rapid progress is due to recent rainfall. 55% of the planned areas (3.49 million hectares) were sown with corn, which is 8% more than the previous week (63% were sown with corn a year earlier). 87% of the corn crops (86% and 90%) are in good and excellent condition.

Wheat harvest in Argentina is now 66% completed. 9.32 million tons of wheat have been harvested with an average yield of 2.31 t/ha. With this average yield, production is expected to reach 14.1 million tons, which is a catastrophically low level.

 

Oilseeds and vegetable oils

- In the week of December 4-10, soybean export sales from the United States reached almost 1 million tons, which is above market expectations. Compared to the previous week the growth is + 62%, and compared to the average level of the last weeks it reaches+ 20%. The largest buyers are:

  • China- 920,000 tons
  • Mexico- 225,000 tons
  • Indonesia- 106,000 tons
  • Vietnam- 103,000 tons
  • Thailand- 95,000 tons

An unknown buyer has given up the purchase of 817,000 tons of soybeans.