Grain Highlights 05.01.2020

Malaysian palm oil futures rose sharply on 04.01.2020. The growth is related to preliminary estimates for the palm oil stocks in the country to the lowest level for the last 13 years - 1.22 million tons.

- As of December 1, 2020, grain stocks in Russia were 44.3 million tons, which is 4% higher than the previous year. Wheat stocks were 27.2 million tons (+ 11%). Stocks of barley decreased by 1% to 2 million tons and corn stocks dropped by 17% to 1.1 million tons.

- In the first six months of the current season (July - Dec), rapeseed imports into the EU reached 3.53 million tons, which is 6% less than the previous year - 3.77 million tons. The largest importers are:

  • Netherlands- 928,000 tons
  • Belgium- 796,000 tons
  • Germany- 642,000 tons
  • France- 638,000 tons
  • United Kingdom- 253,000 tons

The largest suppliers are Ukraine with 2.13 million tons and Canada with 1.2 million tons. The import of rapeseed oil reached 149,000 tons (167,000).

- According to USDA field observations, as of 29.12.2020, 46% of winter wheat in Kansas was in good and excellent condition (33% in November and 40% a year earlier). In Nebraska, 37% of crops are also in the same condition (35% and 70%).

- From 01.01.2021, the authorities in Argentina return the old export tax of 33% for soybeans, compared to 30% in the last 3 months. The export tax on soymeal is also returned from 27% to 30% and on soyoil from 28% to 31%. The duty reduction was made in early October 2020 to encourage farmers to sell their stock. On the other hand, the rapid inflation in the country forces the farmers to keep production in order to prevent the devaluation of their capital.

- Malaysian palm oil futures rose sharply on 04.01.2020.  The growth is related to preliminary estimates for the palm oil stocks in the country to the lowest level for the last 13 years - 1.22 million tons (-22% per month). Production in December decreased by 11% to a total of 1.33 million tons - the lowest level since Feb 2020. Palm oil exports, however, increased by 15% for the month to 1.5 million tons.