Grain Highlights 04.03.2021

04 Mar, 2021
Grain Highlights 04.03.2021
The Ministry of Agriculture of Ukraine projects the new total grain production in 2021 at 75 million tons compared to the current record of 75.1 million tons achieved back in 2019.

- The total oilseed production in Ukraine is projected to reach 19.1 million tons. Other productions are estimated as follows:

  • wheat- 29.5 million tons (25.1 million tons in 2020)
  • barley- 9.2 million tons (7.8)
  • corn- 33.2 million tons (30.3)
  • sunseed-13.5 million tons (13.1)
  • rapeseed- 2.6 million tons (2.6)
  • soybean- 3.1 million tons (2.8)
     

- According to the FAO forecast, in 2021/22 the world wheat production will reach 780 million tons compared to 774 million tons in 2020/21. The wheat production in the EU is projected at 137 million tons (+9%) and wheat production in Russia is expected to fall by 7 million tons. US wheat production is estimated at 50 million tons and wheat production in Canada at 34 million tons.

- Yesterday, commodity funds in Chicago were net sellers of 22,500 contracts of corn, 5,000 contracts of soybeans and 8,000 contracts of wheat.

- The optimal timing for sowing the second corn crop in Brazil has already expired. So far, however, only 39% of the planned corn areas have been sown, compared to 67% a year earlier.

- According to Soybean & Corn Advisor, 15% of soybean crops were in good and excellent condition at the end of February in Argentina, which is 4% less than the previous week. A year earlier, 64% of the crops were in good and excellent condition. Now 15% of the crops are in poor condition and 70% in fair.

- According to CAPPRO, in January soybean crush reached the lowest level in history of 10,300 tons in Paraguay, which is 92% less than in December and 56% less than in January 2020.

- Demand for soybeans from Chinese processors has declined and will remain low in the short term. The decline is due to reduced profit margins of processors. As of 02.03.2021, the profit margin reaches 8.06 USD/ton compared to 20.75 USD/ton as of 10.02.2021. According to some processors, if the margin falls below 20 USD/ton, it is unprofitable to buy soybeans. Processors have large soymeal stocks and they do not need new purchases of soybeans given the reduced consumption of soymeal after the New Year holidays. In 2020/21, soybean imports to China are expected to reach 100 million tons, and 110 million tons in 2021/22 .

- Saudi Arabia has announced a tender for the purchase of 540,000 tons of feed barley of any origin and delivery within the period of April-May.

- Jordan has rejected all offers to buy 120,000 tons of milling wheat of any origin and delivery in the period of October-November.

- Egypt's state-owned company GASC has purchased 60,000 tons of soyoil.